Vice President Kamala Harris has unveiled a new tax plan targeting long-term capital gains, softening President Joe Biden‘s previously proposed rates ahead of the 2024 presidential election.
What Happened: Vice President Harris on Wednesday introduced a 28% tax on long-term capital gains for households earning $1 million or more annually, reported CNBC.
The proposed rate is lower than the 39.6% rate suggested by President Biden in his 2025 fiscal year budget. Harris announced the plan during a rally in North Hampton, New Hampshire, emphasizing the need to reward investment in American innovators and small businesses.
"We will tax capital gains at a rate that rewards investment in America's innovators, founders and small businesses," said the Democratic presidential nominee.
Currently, long-term capital gains, or assets held for more than one year, are taxed at a maximum rate of 20%. Harris’s proposal marks a notable departure from Biden’s economic platform, which she has largely supported until now.
Harris has previously endorsed Biden’s tax increases to fund her spending plans but has faced criticism from within the Democratic Party. Rep. Ro Khanna (D-Ca.) expressed concerns about taxing unrealized gains, which Biden supports but Harris has not yet addressed, according to the report.
Harris also unveiled a new proposal to provide small businesses a $50,000 tax deduction for startup expenses, significantly higher than the current level. This move comes as she prepares for a debate against former President Donald Trump on Sept. 10, hosted by ABC News.
Why It Matters: The introduction of Harris’ new tax plan comes amid growing scrutiny within her party. Analyst Pierre Ferragu recently criticized the Democratic Party’s stance on unrealized capital gains, suggesting that they are “in complete denial” about the issue.
Furthermore, Harris’ recent lead in key swing states, as indicated by new poll results, suggests that her policy shifts may be resonating with voters.
Former Rep. Liz Cheney (R-Wyo.) has also publicly declared her support for Harris, citing the dangers posed by Trump to the republic.
Recently, Harris launched a new ad campaign titled “Focused,” which criticizes Trump’s economic policies. The advertisement aimed to position Harris as a more stable economic leader. The ad campaign was launched on Sept. 3, just a day before her new tax plan announcement
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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