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 full analysis lists 4 implications of this text.
Who stands to gain
high-net-worth individuals and families; investment firms and asset managers; private equity and hedge fund investors