Representative Greg Steube (R-FL) has introduced legislation to lower capital gain taxes, a policy he said is "empowering investors to fuel economic growth and create good-paying American jobs."
For a refresher, capital gains are when you sell an asset for more than what you bought it for. Assets can include stocks, bonds, and tangible items such as real estate, vehicles, or furniture.
Rep. Steube's Revitalizing Investment, Savings, and Entrepreneurship (RISE) Act then reduces capital gains tax rates from nearly 24% to 15%. The current 24% rate includes a 3.8% Medicare surtax on estates, individuals, and trusts and is 5% higher than the Organization for Economic Cooperation and Development average.
Lowering the capital gains tax was noted by Rep. Steube in his press release to be bipartisan, as Presidents Bill Clinton, George W. Bush, and Barack Obama supported lowering the capital gains tax.
"American businesses rely on investment to grow and thrive. Yet, our current tax code burdens entrepreneurs and startups by taxing federal long-term capital gains at nearly 24%, creating a costly barrier to investment," the Florida Congressman said in his press release, adding, "Investing in America should never be a high-risk, expensive gamble. True long-term prosperity and economic security start when Washington unlocks more capital for U.S. industries. Our bill will cap the federal long-term capital gains tax rate at 15%, empowering investors to fuel economic growth and create good-paying American jobs."
Representative French Hill (R-AR), the bill's cosponsor, said, "To build a stronger, more prosperous future, we need policies that unlock capital, reward risk-taking, and drive real growth for all Americans. That is exactly what the RISE Act delivers."
"My bill restores the proven, bipartisan capital gains tax rate that encourages long-term investment in Main Street businesses and drives innovation across our country. With greater access to capital, startups can turn ideas into reality, small businesses will expand and hire, and hardworking Americans will have more opportunity and higher wages," Rep. Hill continued.
In April, Steube introduced a similar bill, the Family Business Legacy Act, which introduces additional estate tax deductions for contributions to 501(c)(4) organizations.
