Harris to break with Biden on capital gains tax, proposing a smaller increase | CNN Politics
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In an economic speech in New Hampshire on Wednesday, Vice President Kamala Harris plans to propose a smaller increase in taxes on capital gains, breaking with the policy laid out by President Joe Biden in his 2025 budget, according to people familiar with the matter.

Vice President Kamala Harris proposed increasing the long-term capital gains tax rate to 28% for wealthy Americans during an economic speech in New Hampshire on Wednesday, breaking with the policy laid out by President Joe Biden in his 2025 budget by suggesting a lower rate.

The current long-term capital gains tax rate – 20%, plus an additional 3.8% tax on higher earners – is paid when an investment is sold, or gains are realized. The Biden budget proposes raising that rate to the top rate he wants to levy on ordinary income – 39.6% – for households with taxable income over $1 million. Harris, the people familiar with the matter say, believes 39.6% is too high.

While Harris still supports taxing the wealthiest individuals and corporations at higher rates – as Biden’s budget also calls for – she believes that a lower capital gains rate would incentivize investors to put more money into startups and small businesses. She has also proposed increasing the corporate tax rate to 28%, up from the current 21% rate set by Trump’s Tax Cuts and Jobs Act of 2017.

  • xmunk@sh.itjust.works
    13·
    3 months ago

    I actually really agree with the removal of external debts backed by capital being a saleable item - market socialism where corporate ownership is forcefully devolved to the actual employees would enable much higher economic efficiency.

    • Overshoot2648@lemm.ee
      9·
      3 months ago

      Yup, that’s why I’m a Mutualist. I think Spain has a pretty good setup that incentives ownership to be sold to it’s employees.

      • WhatAmLemmy@lemmy.worldEnglish
        3·
        3 months ago

        Can you point me to a related law in spain about this?

        I’ve always figured that political democracy can’t co-exist with capitalist plutocracy (when the corporate hierarchy is structured the opposite, top-down) but if there was a mandatory divestment where every business had to return x% of profits to the staff per annum and x% of ownership (e.g. based on a mix of value/wage/tenure) then that would reorient corporations to financially benefit a community and workers, and mitigate wealth inequality. The mandatory part is important as — like a strong minimum wage — it means all are competing on a level playing field and not with some inherent advantage/disadvantage.