On the day that Vice President Kamala Harris unveiled a new plan for small businesses, the Democratic nominee also announced a shift in her plans to fund it, saying the long-term capital gains rate for the ultra-wealthy should be 28%.
That marks a break from President Joe Biden, who has proposed a rate about 10 percentage points higher than that for Americans earning more than $1 million a year.
Harris’s tax change comes after a wave of criticism from many business leaders of the Biden-Harris approach to capital gains, which has sometimes been described as unworkable and punitive — and likely to stifle innovation.
Harris’ shift, announced Wednesday during a speech in North Hampton, New Hampshire, is part of a broader effort by the Democratic nominee this week to boost her reputation in the business world.
“My plan will make our tax code fairer while prioritizing investment and innovation,” Harris said in her speech in North Hampton, as she tried to outline an approach focused on encouraging innovation and the long-term Biden-Harris priority of making the ultra-wealthy pay their “fair share.”
“We know that when government encourages investment, it leads to broad-based economic growth and creates jobs that make our economy stronger,” Harris added Wednesday.
Learn more: Trump vs. Harris: 4 Ways the Next President Could Impact Your Bank Accounts
Continued support for taxing the “unrealized” gains of the richest
But Harris also indirectly reaffirmed Wednesday that she supports an even more controversial idea from Biden: taxing the unrealized gains of the ultra-wealthy. (Unrealized gains are growth in a person’s net worth that exists on paper but is still tied to an asset that hasn’t yet been sold.)
“I support a minimum tax on billionaires,” Harris said again during the policy-focused speech at a quaint small business near Portsmouth, New Hampshire.
The billionaires’ minimum tax is a separate Biden plan that includes an effort to target households’ unrealized gains if their net worth exceeds $100 million.
The bill echoes calls by Democratic senators Bernie Sanders and Elizabeth Warren for a “wealth tax,” but with more limited effects. The bill has nonetheless faced a wave of criticism, particularly over its implementation.
Donald Trump has focused particularly on the unrealized gains proposal, accusing the idea of being “beyond socialism.”
A Wednesday dedicated to regular capital gains
What Harris was still focused on Wednesday – in addition to a tenfold increase in a key tax credit for small businesses…
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