Congress moves to cap capital gains tax at 15%, cutting taxes for wealthy investors
H.R. 4102 — RISE Act · Filed by J. Hill (R-AR) · 5 cosponsors · Introduced Jun 24, 2025 · Referred to committee
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What it does
This bill amends the tax code to cap the federal tax rate on long-term capital gains at 15 percent, eliminating higher tax brackets that currently apply to high-income earners. The primary beneficiaries are investors and wealthy individuals with significant investment income; ordinary wage earners are unaffected because they do not typically realize substantial capital gains.
Why we flagged it
The bill's sole operative mechanism is a reduction in the maximum federal tax rate on long-term capital gains from current law (which includes higher brackets) to a flat 15 percent. This is a straightforward tax cut for investment income, not a regulatory reform or public-interest measure.
What the text implies
- The 15% cap applies to all adjusted net capital gains regardless of income level, meaning high-income earners with multi-million-dollar gains pay the same rate as moderate-income earners with smaller gains, flattening the tax structure.
- Elimination of the higher brackets (currently 20% for top earners) represents a significant revenue loss to the federal government, the magnitude of which depends on the distribution of capital gains income—concentrated among the wealthy, the loss is substantial.
- The bill does not address the preferential treatment of capital gains relative to ordinary income (wages, salaries), which already receive favorable tax treatment; this further widens the gap.
- Effective date is prospective (taxable years beginning after enactment), so the revenue impact begins immediately upon passage and compounds annually.
Section numbers refer to the bill text the analysis read — linked under Primary records below.
Who it affects
The bill reduces federal revenue from capital gains taxation, which will either increase the deficit or require offsetting cuts to public services, while the tax relief flows almost entirely to high-income investors. Ordinary citizens who earn wages (not capital gains) see no benefit and may face reduced public investment or higher taxes elsewhere to compensate for lost revenue.
Who stands to gain
- high-net-worth individuals and families
- investment firms and asset managers
- private equity and hedge fund investors
- real estate investors
- stock market participants in top income brackets
Named in the bill
Internal Revenue Code of 1986, Section 1(h)(1), adjusted net capital gain, House Committee on Ways and Means
Where it stands
5 cosponsors: 5 Republicans.
- Jun 24, 2025 — Introduced · Congress.gov: “Introduced in House”
- Jun 24, 2025 — Referred to House Committee on Ways and Means · Congress.gov: “Referred to the House Committee on Ways and Means”
Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.
How this was measured
Analysis — Quorum's AI read the bill text published by Congress.gov (749 characters) on Aug 14, 2026. Section numbers in the findings refer to that text, linked below; transparency and hidden-provision scores are compared against the median of 16,222 analysed bills.
Status and sponsors — Congress.gov's bill record — actions, committee referrals and cosponsors — loaded nightly. The timeline shows status changes, not every procedural action.
As of — page rendered 2026-10-20.
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