In the ever-evolving world of finance and politics, Vice President Kamala Harris recently outlined her economic platform with a focus on raising the capital gains tax for high earners. While President Joe Biden proposed an increase to 39.6%, Harris suggested a more modest raise to 28% for those earning over $1 million annually.
The current capital gains tax rate stands at 20%, with an additional 3.8% investment tax for those with high incomes. Biden aims to raise this to 5%, resulting in a potential top rate of 44.6%. Harris, on the other hand, is leaning towards aligning with Biden’s proposed increase, which would result in an all-in top rate of 33% under her plan – markedly lower than Biden’s proposal.
Harris emphasized the importance of striking a balance between encouraging investment and ensuring that wealthy investors contribute their fair share in taxes overall. She underscored the need to reward investment in America’s innovators, founders, and small businesses while holding the wealthy and big corporations accountable.
In addition to her capital gains tax proposal, Harris also highlighted her plans to support small businesses and entrepreneurs. She aims to raise the small business tax deduction from $5,000 to $50,000 and introduce a standard deduction that can benefit all small firms.
Looking ahead, Harris set a bold goal of creating 25 million new small businesses during her first term in office, surpassing the record set under Biden’s administration. She expressed her commitment to strengthening America’s small businesses and fostering a dynamic entrepreneurial ecosystem.
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