Vice President Kamala Harris has unveiled a new tax plan targeting long-term capital gains, a move that softens President Joe Biden’s previously proposed rates ahead of the 2024 presidential election.
Harris’s plan, announced during a rally in North Hampton, New Hampshire, proposes a 28% tax on long-term capital gains for households earning $1 million or more annually. This rate is significantly lower than the 39.6% rate suggested by President Biden in his 2025 fiscal year budget.
The Vice President emphasized the need to encourage 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,” Harris stated.
Currently, long-term capital gains, defined as assets held for more than a year, are taxed at a maximum rate of 20%. Harris’s proposal represents a notable shift from Biden’s economic platform, which she has generally supported until now.
The introduction of this plan comes amidst growing scrutiny within the Democratic Party regarding its stance on capital gains. Analyst Pierre Ferragu recently criticized the party’s position, suggesting they are “in complete denial” about the issue.
Harris’s recent lead in key swing states, according to new poll results, indicates 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.
The announcement of the tax plan coincides with Harris launching a new ad campaign titled “Focused,” which criticizes Trump’s economic policies and aims to position Harris as a more stable economic leader.
This new tax plan and accompanying campaign serve as a strategic maneuver by Harris as she prepares for a debate against former President Donald Trump on September 10, hosted by ABC News.
