Harris calls for higher taxes on investment income — but less than Biden wanted

Vice President Kamala Harris proposed higher taxes on big-dollar investments like real estate and stocks during her visit to New Hampshire. She suggested a 28% tax rate on long-term capital gains for those earning a million dollars or more annually, emphasizing the role of government encouragement in investment for economic growth and job creation.

Currently, the top capital gains tax rate is 20%, making Harris’ plan a significant increase for those selling appreciated assets. Her proposal is less aggressive than President Biden’s plan, which aimed for a top rate of 44.6% on investment income.

Harris also highlighted other aspects of her tax policies, such as increasing the federal tax deduction for business startup expenses and simplifying the tax-filing process for small businesses. She mentioned plans to make it easier for businesses to file taxes, similar to the simplified process for individual taxpayers.

While Harris did not mention her support for eliminating taxes on tipped income, she criticized President Trump’s tariff threats as a “national sales tax on everyday products and basic necessities.” She did not address the fate of Trump’s 2017 tax cuts that lowered corporate tax rates and individual income taxes temporarily.