(Cupventi.com) – Vice President Kamala Harris unveiled a new tax proposal on Wednesday, targeting long-term capital gains for households earning $1 million or more annually. Harris proposed a 28% tax rate, which is notably lower than the 39.6% rate included in President Joe Biden’s 2025 fiscal year budget. Harris made the announcement during a rally in North Hampton, New Hampshire, stating, “We will tax capital gains at a rate that rewards investment in America’s innovators, founders, and small businesses.” The Wall Street Journal was the first to report on Harris’ capital gains tax plan.
Currently, long-term capital gains, which refer to assets held for more than one year, are taxed at a maximum rate of 20%. Harris’ proposal represents a significant shift from Biden’s economic platform, where she had previously aligned closely with his policies, particularly his aggressive stance towards large corporations. Harris had earlier supported Biden’s proposed tax increases as a means to fund her own spending plans. However, her new plan marks a rare divergence from Biden’s approach.
Not everyone within the Democratic Party is fully on board with the idea of taxing capital gains more aggressively. Representative Ro Khanna (D-CA) expressed reservations about taxing unrealized gains—the potential profits from assets that have appreciated but have not yet been sold. “I don’t think a blanket tax on unrealized gains is a good thing,” Khanna said in an interview with CNBC’s “Squawk Box.” This comment directly references Biden’s proposal to tax unrealized gains for households with a net worth of at least $100 million. Khanna raised concerns that such a tax could have unintended consequences for startup entrepreneurs, potentially stifling business growth.
Despite these concerns, Harris has positioned herself as both a pro-business candidate and a defender against corporate greed, with a strong focus on supporting the middle class. In the weeks leading up to her New Hampshire rally, she has worked to maintain this delicate balance.
On the other hand, Harris’ Republican opponent, former President Donald Trump, has taken a starkly different approach. He has consistently attacked Harris’ economic record, framing her policies as disastrous for the U.S. economy. “Trump cash versus Kamala crash. We’re going to have a crash like 1929 if she gets in. It will not be pretty,” Trump said in a video posted on Truth Social during Harris’ rally.
To counter these attacks and appeal to business owners, Harris also announced a new proposal on Wednesday that aims to support small businesses. Her plan includes offering a $50,000 tax deduction for startup expenses, significantly increasing the current deduction amount by ten times.
As Harris prepares for the upcoming debate against Trump on September 10, hosted by ABC News, she continues to refine her economic policies to appeal to a broad spectrum of voters, positioning herself as a candidate who supports both economic growth and fairness.