Kamala Harris backs smaller rise in capital-gains taxes than proposed by Biden

By Victor Reklaitis

Democratic presidential nominee backs long-term top tax rate of capital gains of 28%

Democratic presidential nominee Kamala Harris on Wednesday backed a lower top tax rate for capital gains than President Joe Biden has proposed, with the move coming after her campaign previously had signaled agreement with Biden's stance.

"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," she said during a campaign speech in New Hampshire.

"If you earn a million dollars a year or more, the tax rate on your long-term capital gains will be 28% under my plan, because we know when the government encourages investment, it leads to broad-based economic growth, and it creates jobs, which makes our economy stronger."

Last month, the Harris campaign had said she supported the tax increases put forth in Biden's most recent budget proposal, which came out in March. Those proposed increases had included raising the top all-in rate on long-term capital gains to 44.6% - 39.6% for ordinary income and 5% for investment income.

In Harris's speech in New Hampshire, she also touted her new proposal for a startup tax incentive to spur small-business creation.

"I believe America's small businesses are an essential foundation to our entire economy," Harris said. "Half of all private-sector workers own or run a small business or work for a small business."

-Victor Reklaitis

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09-04-24 1548ET

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