In a recent rally in New Hampshire, Vice President Kamala Harris made a significant departure from President Joe Biden’s tax policy agenda by proposing a more moderate increase in the top capital gains rate. This change aims to strike a balance between fairness and incentivizing investment in American innovators, founders, and small businesses.
Key points from the announcement include:
- Harris suggested a tax rate of 28% for long-term capital gains earned by individuals making a million dollars or more annually.
- This proposed rate is an increase from the current rate of 20% for the highest earners, which rises to 23.8% when factoring in the 3.8% Obamacare investment tax.
- By raising this rate to 33%, including the Obamacare tax, Harris aims to ensure that billionaires and big corporations pay their fair share in taxes while prioritizing investment and innovation.
While Harris has positioned herself as more centrist on certain issues, she has supported several of Biden’s economic and tax proposals, emphasizing the need for a fair tax code that supports small businesses and innovation.
The significance of this change in policy is underscored by Harris’ shift away from more left-leaning stances she previously held as a senator from California and during the 2020 Democratic presidential primaries. Notably, she no longer supports a federal job guarantee, the elimination of private healthcare plans in a Medicare for All program, or banning fracking.
Concluding her address in New Hampshire, Harris also endorsed a substantial tenfold increase in the small business tax deduction for startup expenses, from $5,000 to $50,000. She highlighted her commitment to assisting existing small businesses in expanding by providing financial support and streamlining bureaucratic processes.
Overall, Harris’ revised tax policy proposals aim to strike a balance between progressive taxation, incentivizing investment, and supporting small businesses, reflecting a pragmatic approach to economic policy.
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