WASHINGTON — Democratic presidential nominee Kamala Harris on Wednesday proposed a more modest increase to the capital-gains tax rate than President Joe Biden unveiled in his budget earlier this year, marking one of the vice president’s biggest policy departures from the outgoing president.
Harris called for a 28% capital-gains tax rate for Americans who earn at least $1 million, lower than Biden’s proposed 39.6% top rate on capital gains − the profits an investor makes from selling an asset such as stocks or real estate.
“While we ensure that the wealthy and big corporations pay their fair share, we will tax capital gains at a rate that rewards investment in America’s innovators, founders and small businesses,” Harris said.
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Harris announced the more business-friendly capital gains proposal during a campaign speech at the Throwback Brewery in North Hampton, New Hampshire.
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“We know when the government encourages investment, it leads to broad-based economic growth and it creates jobs, which makes our economy stronger,” Harris said during the remarks where she also unveiled other tax-relief measures her campaign says are aimed at spurring growth among small businesses.
The Wall Street Journal first reported on the capital-gains tax plan. Currently, the rate is 23.8%, which includes a 20% flat rate plus a 3.8% on investment income.
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