Vice President Kamala Harris boards Air Force Two at Joint Base Andrews in Maryland on September 4, 2024.
Erin Shaff | The New York Times | via Reuters
Vice President Kamala Harris on Wednesday proposed a 28% tax on long-term capital gains for households earning more than $1 million a year, lower than the 39.6% rate proposed by President Joe Biden during his presidential campaign. FY2025 Budget.
“We will impose a capital gains tax at a rate that rewards investment in American innovators, founders and small businesses,” the Democratic presidential candidate said at a rally in Northampton, New Hampshire. Harris’ capital gains tax plan was first reported by The Wall Street Journal.
Long-term capital gains, i.e. assets held for more than one year, are currently taxed at a maximum rate of 20%.
Harris’ announcement marks a rare departure from Biden’s economic policies.
The new Democratic presidential candidate has so far largely aligned her economic policy proposals with those of her incumbent boss.
Harris has adopted many of the president’s aggressive rhetoric against big business and has previously supported tax hikes in his budget proposals as a way to pay for her own spending plans.
But some of the corporate pressure campaigns have drawn backlash even from within the Democratic Party.
“I don’t think a flat tax on unrealized gains is a good thing,” Rep. Ro Khanna, D-Calif., said in an interview on CNBC’s “Squawk Box” on Wednesday.
Khanna’s comments were in reference to taxing potential gains that accumulate before assets are sold, something Biden supports. Harris has not announced plans to deviate from Biden’s proposal to tax unrealized gains for households with assets of at least $100 million.
Khanna noted that for startup entrepreneurs, there could be unintended consequences that could stifle the growth of their businesses.
Over the past few weeks, Harris has worked to position herself as both a friendly face for business, a warrior against corporate greed and a champion for the middle class.
As Harris touts her economic policies, her Republican opponent, former President Donald Trump, has slammed her record and positioned himself as the best candidate for the U.S. economy.
“Trump Cash vs. Kamala. If she wins we will have a 1929-style collapse. It will be ugly,” Trump said in a video posted to Twitter. The truth of society During Harris’ New Hampshire rally on Wednesday.
To combat these attacks, Harris has unveiled more plans geared towards helping businesses, especially ahead of the September 10 ABC News-hosted debate between Trump and President Donald Trump.
Governor Harris also announced a new proposal on Wednesday to offer small businesses a $50,000 tax credit for start-up costs, 10 times the current amount.
