Vice President Kamala Harris proposes increasing the long-term capital gains tax rate to 28% for wealthy Americans, breaking with President Joe Biden’s 2025 budget proposal. Harris believes a lower rate incentivizes investors to fund startups and small businesses.

The current long-term capital gains tax rate is 20%, plus an additional 3.8% tax on higher earners. Biden’s budget proposes raising this rate to 39.6% for households with taxable income over $1 million, but Harris considers this too high.

Harris supports taxing the wealthiest individuals and corporations at higher rates, proposing a corporate tax rate increase to 28% from 21%. She aims to fund targeted programs for families and small businesses by letting Trump-era tax cuts lapse ¹.

“We must ensure everyone can compete and succeed, building wealth and intergenerational wealth,” Harris said, emphasizing small businesses’ role in the economy.