Harris distances herself from Biden with capital gains tax proposal

Vice President Kamala Harris, the Democratic Party's presidential nominee, just put forth a new capital gains tax proposal. 

What has caught the attention of many, according to Fox Business, is that Harris's proposal differs, significantly, from the one put forth by President Joe Biden.

The question, of course, is if Harris thought this was such a good idea then why has she not tried to implement it during her time with the Biden administration.

This is a question that is currently being asked in response to many of the proposals that Harris is putting forth as the Democratic Party's presidential nominee.

The details

According to Fox, Harris revealed her capital gains tax proposal in a speech that she gave in New Hampshire on Wednesday, Sept. 4, 2024.

Harris said:

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.

The vice president, though, also said that she is still looking to make sure that wealthy individuals and corporations "pay their fair share."

"And 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," Harris said.

Fox suggested that this is Harris's attempt "to appeal to a broader base of voters."

Background

As mentioned at the outset, Harris is separating herself from Biden on this issue.

Fox explains:

In his fiscal 2025 budget, Biden had proposed raising the tax rate on long-term capital gains — the profits made from selling or trading an asset held for more than a year — to 39.6% for those earning over $1 million annually, from the current rates, which range up to 20%, depending on income.

ABC News notes that former President Donald Trump, in 2016, supported a max capital gains tax of 20%. It is unclear where Trump stands on the issue today. He, at the time of this writing, has not commented on the issue.

ABC additionally reports:

A source familiar with the plan told ABC News that Harris believes a more moderated approach toward capital gains taxes will balance with other measures she supports to crack down on billionaires and big corporations. Harris said on Wednesday that she supported a minimum tax rate on billionaires. The source said she also supports raising the corporate tax rate and quadrupling taxes on stock buybacks.

In other words, while Harris has come up with a different proposal from Biden for capital gains, many of her other economic policies remain the same as Biden's.