Kamala’s New Plan For The Capital Gains Tax
Kamala Harris, the Democrat presidential contender, is set to unveil a revised proposal for increasing the top capital gains tax rate that is less aggressive than President Joe Biden’s original plan. On Wednesday afternoon, Vice President Harris will make the announcement in Portsmouth, New Hampshire, alongside a new policy initiative aimed at supporting small businesses. The proposed changes are designed to appeal to a wider audience, including independent voters and Republicans who remain skeptical of former President Donald Trump.
Harris’s proposal aims to temper the higher tax rate that Biden had initially suggested, which sought to increase the capital gains tax from 20% to 39.6% for those earning over $1 million annually. By offering a more moderate increase, Harris is likely trying to attract centrist voters while maintaining much of Biden’s broader strategy to bolster the middle class. This strategy reflects her ongoing effort to build a diverse coalition of supporters.
The Vice President’s new economic policy includes a $50,000 tax deduction for new small businesses, a significant boost compared to the current relief measures. This proposal is part of a larger plan to foster continued economic growth and support the small business sector, which has been pivotal in job creation. Since 2019, small businesses have been responsible for generating 70% of net new jobs in the U.S.
In the 2024 election, recent polls indicate that Harris holds a narrow lead over Trump in New Hampshire, a state that has favored Democratic candidates in most recent presidential elections, with the notable exception of George W. Bush’s 2000 victory. Despite this, Trump’s spokesperson Karoline Leavitt dismissed claims that Republicans were conceding the state, asserting that Trump’s campaign maintains a strong presence there.
Leavitt criticized Harris’s economic policies, arguing that Biden’s economic agenda, which Harris supports, has led to rising energy prices, inflation, and diminished small business confidence. Harris’s upcoming campaign event at a local brewery will feature a range of supporters, including a leader from a “Republicans for Harris” group, highlighting her outreach efforts to various voter demographics in New Hampshire. The Treasury Department’s recent report showing a 50% increase in new business applications compared to 2019 underscores the ongoing entrepreneurial spirit despite economic challenges.
