Harris Calls for 28% Capital Gains Tax, Breaking With Biden
In her efforts to flesh out the details of the economic platform she has developed, Vice President Kamalah Harris called on Wednesday for a capital gains tax increase to 28%, for those who earn more than $1,000,000 a year. This is a lower rate than that proposed by Joe Biden.
Biden proposes raising the capital gains tax to 39.6%, for those with high incomes. Biden proposes to increase the investment tax from 3.8% to 5% for high-income earners. This would result in a top rate of 44.6%. Harris has not said what she would do with the investment taxes, but The Wall Street Journal reported that she supports raising them along the lines Biden proposed. This would result in an all-in rate of 33.3%, which is more than 10 percentage points below Biden’s top rate.
Harris said that her proposal strikes the right balance between encouraging investments and making sure wealthy investors pay their fair share of taxes. Harris, speaking at a Portsmouth, New Hampshire campaign event, said that while she would ensure the wealthy pay their fair share of taxes, capital gains will be taxed at a rate which rewards investments in America’s entrepreneurs, innovators, and small businesses.
Harris also called for more support for entrepreneurs and small businesses. Harris wants to increase the small business deduction from $5,000 up to $50,000 and create a deduction standard that all small businesses can use.
|
Harris stated that she would set a target of 25 million small businesses during her first term. This will surpass the 19 million record seen under Biden. She said that as president, one of her top priorities would be to support America’s small business.
