In a surprising move, Democratic presidential candidate Kamala Harris has proposed a less drastic increase in the top capital gains tax rate. Capital gains tax rates are an important issue for some voters in the upcoming November election, and Harris's new proposal could have a significant impact on the debate. Harris wants a 28% tax on capital gains for those making $1 million per year, while President Biden has pushed a top rate of 44.6%.
The vice president's proposal signifies a break from President Biden's economic agenda, as she tries to keep big investors and wealthy Americans on her side. In a break with President Joe Biden, Democratic presidential candidate Kamala Harris called Wednesday for a smaller capital gains tax increase. Vice President Kamala Harris wants to tax long-term capital gains at 28% for wealthy Americans, calling for a top rate that's more than ten percentage points lower than President Biden's proposal.
Vice President Kamala Harris will propose a lower capital gains tax rate increase than President Joe Biden in his annual budget, marking a rare policy difference between the two Democratic leaders. Kamala Harris has proposed increasing the tax rate on long-term capital gains for the wealthiest Americans to 28%, softening a potentially controversial aspect of President Biden's tax plan. NIIT is a tax on net investment income. Those who are subject to the tax will pay 3.8% on the lesser of the two: their net investment income or the excess of their modified adjusted gross income over the threshold amount.