VP @KamalaHarris has a plan to grow our economy and support the middle class.
This will help ensure our small businesses continue to have the resources they need to grow and thrive.https://t.co/6ai0l1vKIq
— Deborah Ross (@DeborahRossNC) September 9, 2024
Vice President Kamala Harris has proposed a 28% tax on long-term capital gains for Americans earning $1 million or more annually. This rate is higher than the current 20% rate for top earners but lower than the 39.6% rate proposed by President Joe Biden in his 2025 budget plan. Harris’ plan also includes raising the net investment income tax (NIIT) to 5%, resulting in a combined rate of 33% for the highest earners—effectively increasing the tax burden for those that fall into one of the higher 2025 income tax brackets.
This would be the highest capital gains tax rate since 1978. Senator Bernie Sanders, I-Vt., believes Harris should go even higher with her proposed rate. “I would go higher than that,” Sanders told NBC’s Meet the Press.
If the personal income tax credits are allowed to expire, American will see their federal income taxes rise by an average of $1,100. Additionally, an estimated 2 million full-time jobs would be destroyed. I’ll keep pushing to extend these tax credits. https://t.co/gJoLfbnaGp
— Gus Bilirakis (@RepGusBilirakis) September 9, 2024
Kamala Harris’s plan to hike capital gains taxes by nearly 40% is a brutal attack on entrepreneurs and small businesses. Masking it as “moderate” is a sham—she’s crippling the very innovators she claims to support.https://t.co/mXKicFUceh
— Glenn Hegar (@Glenn_Hegar) September 8, 2024
I think she’s trying to be pragmatic and doing what she thinks is right in order to win the election.”
Throughout her campaign, Harris has largely aligned with Biden’s tax proposals. She has supported his promise not to raise taxes on those making less than $400,000, backed his vision for an expanded child tax credit, and embraced his proposed Billionaire Minimum Income Tax.
Harris’ tax policy proposals analyzed
However, Harris has also put forth some of her own ideas. She has proposed increasing the tax deduction for new small businesses from $5,000 to $50,000 in eligible startup expenses. Additionally, she has advocated for cutting bureaucratic red tape to make it easier for small businesses to operate and grow.
Harris has also adopted some populist tax ideas, such as ending the federal income tax on tips, a proposal originally made by former President Donald Trump. She has proposed tax credits for eligible renters below a certain income level and refundable tax credits for individuals making less than $50,000 through her LIFT the Middle Class Act. Furthermore, Harris supports expanding the Earned Income Tax Credit, which benefits lower-income workers.
She has also proposed quadrupling the excise tax on stock buybacks from 1% to 4%. These proposals highlight Harris’ focus on supporting small businesses, imposing higher taxes on the wealthy, and providing tax relief for lower-income Americans. However, any changes to capital gains tax rates would require Congressional approval, and control of the House and Senate remains uncertain.
