Vice President Kamala Harris has unveiled a new tax plan targeting long-term capital gains, softening the president's stance Joe BidenThe tariffs were previously proposed by the government ahead of the 2024 presidential election.
What happenedVice President Harris on Wednesday introduced a 28% tax on long-term capital gains for households earning $1 million or more a year. reported CNBC Channel.
The proposed rate is lower than the 39.6% suggested by President Biden in his fiscal year 2025 budget. Harris announced the plan during a rally in North Hampton, New Hampshire, and emphasized the need to reward investment in American innovators and small businesses.
“We will tax capital gains at a rate that rewards investment in America's innovators, founders and small businesses,” the Democratic presidential candidate said.
Currently, long-term capital gains, or assets held for more than a year, are taxed at a top rate of 20%. Harris’s proposal marks a notable shift from Biden’s economic platform, which he has largely supported so far.
Harris has previously backed Biden's tax increases to fund his spending plans, but has faced criticism within the Democratic Party. Ro Khanna (D-Ca.) expressed concerns about taxing unrealized gains, something Biden supports but Harris has not yet addressed, the report said.
Harris also unveiled a new proposal to give small businesses a $50,000 tax deduction for start-up expenses, significantly higher than the current level. The move comes as she prepares for a debate against former President Donald Trump. Donald Trump on September 10, presented by ABC News.
See also: Liz Cheney says she will vote for Kamala Harris in the 2024 presidential election and mentions the danger Trump poses to the Republic
Why is it important?:Harris's unveiling of her new tax plan comes amid growing scrutiny within her party. Analyst Pierre Ferragu He recently criticized the Democratic Party's stance on unrealized capital gains, suggesting they are “in complete denial” on the issue.
Moreover, Harris's recent lead in key states, as indicated by new polling results, suggests that her policy shifts may be resonating with voters.
Former representative Liz Cheney (R-Wyo.) has also publicly declared his support for Harris, citing the dangers Trump poses to the republic.
Harris recently launched a new ad campaign titled “Focused,” which criticizes Trump’s economic policies. The ad was intended to position Harris as a more stable economic leader. The ad campaign was launched on September 3, just one day before the announcement of her new tax plan.
Read next:
Image via Shutterstock
This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
Market news and data provided by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.