Harris proposed Wednesday increasing the capital gains tax to 28 percent for those with $1 million or more in income, up from its current effective level of 23.6 percent.
Harris’s target rate is well below the 44.6 percent rate proposed in a budget update from the Biden administration in July. It is also lower than the proposed increase to 39.6 percent included in the president’s most recent budget.
“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 plan, because we know when the government encourages investment, it leads to broad based economic growth,” Harris said.
Harris fleshed out more details on her economic plans during the speech, including another proposal to increase a tax deduction for new businesses from $5,000 to $50,000, greater “access to capital,” support for “business incubators” and more federal contracts with small businesses.
Harris also mentioned administrative changes to business tax filing, “similar to how individuals can take a standard deduction.”
The Hill’s Tobias Burns has more here.
