Kamala Harris to Propose Lower Capital Gains Tax Rate Than Biden in Economic Speech

by Pooja Chauhan · 04/09/2024

Vice President Kamala Harris is set to propose a smaller capital gains tax increase compared to President Biden’s 2025 budget, aiming to incentivize investment in startups and small businesses.

Bollywood Fever: Vice President Kamala Harris is set to outline her economic policy vision in New Hampshire on Wednesday, proposing a more moderate increase in the capital gains tax than the one outlined in President Joe Biden’s 2025 budget.

While Biden has called for raising the capital gains tax rate to 39.6% for households with over $1 million in income, Harris reportedly believes that rate is too high and plans to propose a smaller increase.

Currently, the capital gains tax rate for higher earners is 23.8%, paid when an investment is sold.

Harris’s proposal aims to strike a balance by still taxing the wealthiest individuals at higher rates but avoiding a dramatic hike that could discourage investments in startups and small businesses.

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Her advisers have emphasized that she continues to support letting many Trump-era tax cuts for the wealthy and corporations expire, with the goal of funding programs that benefit families and small businesses.

President Biden’s broader budget proposal also seeks to raise the top marginal income tax rate to 39.6% and implement a 25% minimum tax on households with a net worth of over $100 million.

While Harris remains aligned with the administration’s populist policies, such as a $25,000 credit for first-time homebuyers and a $6,000 child tax credit for newborns, her stance on capital gains reflects a more moderate approach on certain economic issues.

As Harris works to define her own policy platform in the lead-up to the 2024 election, political analysts suggest she may be aiming to establish a distinct voice while maintaining the core values of the Biden administration.

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