Harris Disagrees With Biden On Capital Gains Tax, Proposes Smaller Increase

Vice President Kamala Harris has proposed increasing the long-term capital gains tax rate to 28% for wealthy Americans during an economic speech in New Hampshire on Wednesday, 4th of September, 2024, breaking with the policy laid out by President Joe Biden in his 2025 budget by suggesting a lower rate.

CNN reports that the current long-term capital gains tax rate – 20%, plus an additional 3.8% tax on higher earners – is paid when an investment is sold, or gains are realized. The Biden budget proposes raising that rate to the top rate he wants to levy on ordinary income – 39.6% – for households with taxable income over $1 million.

Harris, the people familiar with the matter say, believes 39.6% is too high.

While Harris still supports taxing the wealthiest individuals and corporations at higher rates – as Biden’s budget also calls for – she believes that a lower capital gains rate would incentivize investors to put more money into startups and small businesses. She has also proposed increasing the corporate tax rate to 28%, up from the current 21% rate set by Trump’s Tax Cuts and Jobs Act of 2017.e current long-term capital gains tax rate – 20%, plus an additional 3.8% tax on higher earners – is paid when an investment is sold, or gains are realized.

The Biden budget proposes raising that rate to the top rate he wants to levy on ordinary income – 39.6% – for households with taxable income over $1 million. Harris, the people familiar with the matter say, believes 39.6% is too high.

Advisers said Harris supports allowing many Trump-era tax cuts for the wealthy and big corporations to lapse in favor of funding more targeted programs for families and small businesses.

“My vision of an opportunity economy is one where everyone can compete and have a real chance to succeed – where everyone, regardless of who they are, where they start, can build wealth, including intergenerational wealth,” Harris said in New Hampshire.

She added: “I believe America’s small businesses are an essential foundation to our entire economy.”