Revitalizing Investment, Savings, and Entrepreneurship Act; RISE Act
Summary
The Revitalizing Investment, Savings, and Entrepreneurship Act (RISE Act) proposes to amend the Internal Revenue Code of 1986, capping the tax rate on adjusted net capital gains at 15%. This bill was introduced in the House of Representatives by Mr. Hill of Arkansas and Mr. Steube and has been referred to the Committee on Ways and Means.
The primary aim of the bill is to stimulate economic activity by incentivizing investment through lower capital gains taxes. The effective date would be for taxable years beginning after the enactment of the Act.
Expected Effects
If enacted, the RISE Act would lower the tax burden on capital gains, potentially encouraging more investment. This could lead to increased economic activity and potentially higher asset values for investors. However, it could also reduce government revenue, potentially increasing the national debt if not offset by other measures.
Potential Benefits
- Increased Investment: Lower capital gains taxes could incentivize more investment in businesses and assets.
- Economic Growth: Increased investment may lead to economic growth and job creation.
- Higher Asset Values: Investors may see higher returns on their investments due to lower taxes.
- Entrepreneurship: Reduced capital gains taxes could encourage entrepreneurship and new business formation.
Most Benefited Areas:
Potential Disadvantages
- Reduced Government Revenue: Lower tax rates on capital gains could decrease government revenue, potentially impacting public services.
- Increased National Debt: If not offset by spending cuts or other revenue increases, the bill could contribute to the national debt.
- Potential for Inequality: Benefits may disproportionately accrue to higher-income individuals who hold more capital assets.
- Complexity: Changes to the tax code can add complexity and create opportunities for tax avoidance.
Most Disadvantaged Areas:
Constitutional Alignment
The bill falls under the purview of Congress's power to lay and collect taxes, duties, imposts, and excises as outlined in Article I, Section 8, Clause 1 of the Constitution. The bill does not appear to infringe on any specific constitutional rights or limitations. The power to set tax rates is a fundamental aspect of congressional authority, and the proposed change appears to be within constitutional bounds.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).