The suggested 28 percent rate is a reduction from the 44.6 percent proposed by Biden, although it still amounts to a tax increase for high income taxpayers.
WASHINGTON—Vice President Kamala Harris on Sept. 4 proposed a new tax rate on capital gains at 28 percent, which is higher than the existing level but lower than President Joe Biden’s 2025 budget proposal that she previously endorsed.
Harris’s plan represents a departure from Biden’s budget proposal, which would raise the capital gains tax on individuals earning more than $1 million to 44.6 percent.
The announcement was made days before Harris’s Sept. 10 debate with former President Donald Trump, who has cast his Democrat opponent’s economic plans as being bad for businesses.
Currently, long-term capital gains are taxed at a maximum of 20 percent, and high earners may be subject to an additional 3.8 percent net investment income tax, potentially raising the maximum tax rate on long-term capital gains to 23.8 percent.
“If you earn a million dollars a year or more, the tax rate on your long-term capital gains will be 28 percent under my…
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