Harris is calling for a 28 percent capital gains tax, breaking with Biden

As she continues to flesh out the details of her economic platform, Vice President Kamala Harris on Wednesday called for raising the capital gains tax to 28 percent for those making more than $1 million a year, offering a smaller increase than the president’s proposed Joe. Biden.

The current capital gains tax rate is 20 percent, which Biden proposed raising to 39.6 percent for top earners. There is an additional 3.8% tax on investments for high earners, which Biden wants to raise to 5%, producing a potential top rate of 44.6%. Harris has not said what she wants to do with the investment tax, but The Wall Street Journal reports that she favors raising it along the lines proposed by Biden, producing a maximum all-in rate of 33 percent for her proposal — more than 10 points. lower than Biden’s top all-in rate.

Harris said her proposal strikes a balance between encouraging investment and making sure wealthy investors pay enough in taxes overall. “While making sure rich and big corporations pay their fair share, we will tax capital gains at a rate that rewards investment in America’s innovators, founders and small businesses,” Harris said at a campaign event in Portsmouth, New Hampshire.

In addition to the capital gains tax proposal, Harris called for more support for small businesses and entrepreneurs. Harris wants to increase the small business tax deduction from $5,000 to $50,000 and create a standard deduction that can be used by all small businesses.

Harris said he would set a goal of 25 million new small businesses in his first term, surpassing the record of 19 million seen under Biden. “As president, one of my biggest priorities will be strengthening America’s small businesses,” she said.

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