WASHINGTON –
U.S. Vice-President Kamala Harris proposed increasing the long-term capital gains tax rate to 28 per cent 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 per cent, plus an additional 3.8 per cent 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 per cent – for households with taxable income over US$1 million. Harris, the people familiar with the matter say, believes 39.6 per cent is too high.
While Harris still supports taxing the wealthiest individuals and corporationsat higher rates – as Biden’s budget also calls for – she believes that a lower capital gains rate would incentivize investors …