{"id":2340514,"date":"2024-09-13T05:51:02","date_gmt":"2024-09-13T09:51:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/harriss-capital-gains-plan-clashes-with-bidens-investment-income-proposal-washington-examiner\/"},"modified":"2024-09-13T05:55:54","modified_gmt":"2024-09-13T09:55:54","slug":"harriss-capital-gains-plan-clashes-with-bidens-investment-income-proposal-washington-examiner","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/harriss-capital-gains-plan-clashes-with-bidens-investment-income-proposal-washington-examiner\/","title":{"rendered":"Harris\u2019s capital gains plan clashes with Biden\u2019s investment income proposal &#8211; Washington Examiner"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">26<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fharriss-capital-gains-plan-clashes-with-bidens-investment-income-proposal-washington-examiner%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2340514&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Vice President \u200bKamala Harris has recently unveiled a \u200ccapital \u2062gains tax \u2064plan that diverges from President\u2064 Joe Biden\u2019s proposal. While both aim to increase\u200b taxes on the wealthiest Americans, Harris&#8217;s approach is less aggressive. She proposes raising the top capital gains tax \u2062rate to 28% for individuals \u200cearning over $1 million,\u2063 contrasted with Biden&#8217;s suggested rate of 39.6%. Harris also seeks to increase the 3.8% Obamacare investment tax\u2064 to 5%, bringing the overall\u200c tax rate under her plan to 33%. Critics express concern that\u2062 even this lower rate could negatively impact business and \u2063economic growth in the U.S. Harris&#8217;s\u2062 proposal would \u200cestablish a new tax bracket for those earning over\u200c $1 million, ultimately resulting in the\u200d second-highest capital gains \u200crate among developed countries, just behind \u2064Denmark. This change \u200bis part of her plan to generate revenue, although it&#8217;s noted that her other\u2064 tax initiatives \u200ccould raise even more. while Harris&#8217;s plan aligns with the Biden administration&#8217;s goals, it\u200c is\u2063 considered a moderate adjustment rather than a sweeping reform.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-header-search-button-mob dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-mobile-search-icon td-icon-search\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-drop-down-search\" aria-labelledby=\"td-header-search-button\">\n<div class=\"tdb-drop-down-search-inner\">\n<form method=\"get\" class=\"tdb-search-form\" action=\"https:\/\/www.washingtonexaminer.com\/\"><\/form>\n<div class=\"tdb-aj-search\"><\/div>\n<\/div>\n<\/div>\n<p><a href=\"http:\/\/www.washingtonexaminer.com\/#\" role=\"button\" aria-label=\"Search\" class=\"tdb-head-search-btn dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-search-icon td-icon-search\"><\/i><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-sacff-txt\">Magazine &#8211; Business<\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<h1 class=\"tdb-title-text\">Harris&rsquo;s capital gains plan clashes with Biden&rsquo;s investment income proposal<\/h1>\n<div><\/div>\n<div class=\"tdb-title-line\"><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div id=\"Brid_1755244\" class=\"tpd-featured-video bridtv\"><\/div>\n<p>Vice President <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/kamala-harris\/\" target=\"_blank\" rel=\"noopener\" title>Kamala Harris<\/a>&lsquo;s <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/joe-bidens-public-approval-falls-near-lowest-level-polls-show\/\" title=\"Polls indicate that Joe Biden&#039;s public approval is nearing its lowest level.\">presidential campaign recently revealed<\/a> a plan to raise capital gains <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/taxes\/\" target=\"_blank\" rel=\"noopener\" title>taxes<\/a> on the nation&rsquo;s <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/wealth\/\" target=\"_blank\" rel=\"noopener\" title>wealthiest<\/a>. And the Democratic nominee&rsquo;s proposal is a bit of a departure from a capital gains proposal by her boss, President <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/joe-biden\/\" target=\"_blank\" rel=\"noopener\" title>Joe Biden<\/a>.<\/p>\n<div class=\"article-paywall\">\n<p>Harris&rsquo;s idea would shake up how much different levels of earners pay in <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-to-propose-massive-new-legislative-package-cost-to-be-borne-by-taxpayers\/\" title=\"Biden to propose massive new legislative package, cost to be borne by taxpayers\">capital gains taxes<\/a>, which are levied when someone makes a profit from the sale of a capital asset, such as a stock or a bond. It would alter the current three different thresholds for capital gains.<\/p>\n<p>The first one is for those with taxable income up to just over $47,000. Those who fall into that lowest bucket don&rsquo;t pay capital gains taxes and have a 0% rate.<\/p>\n<p>The next step up is those with taxable income up to $518,900. Those individuals are taxed at a 15% rate.<\/p>\n<p>Finally, the highest capital gains rate is 20% for everyone above $518,900. When a 3.8% Obamacare investment tax for top earners is included, the rate is 23.8%.<\/p>\n<p>Both Biden and Harris are pushing for the highest earners to pay more in capital gains taxes. It is clear that Harris built off of Biden&rsquo;s previous proposals.<\/p>\n<p>&ldquo;Harris is carrying forward a lot of the ideas that were put forward by the Biden administration on capital gains,&rdquo; Will McBride, vice president of federal tax policy at the Tax Foundation, told the <em>Washington Examiner<\/em>. &ldquo;And so in particular, she&rsquo;s carried forward a large increase in the top tax rate on capital gains.&rdquo;<\/p>\n<h2 class=\"wp-block-heading\">Biden&rsquo;s capital gains proposal<\/h2>\n<p>Biden has had several plans to soak the rich that never came to fruition, even when Democrats controlled both chambers of Congress for the first two years of his administration.<\/p>\n<p>On the capital gains front, Biden wanted to raise the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/stock-market-tanks-after-report-on-biden-plan-to-pay-for-leftist-agenda-experts-warn-it-is-insanity\/\" title=\"Stock Market Tanks After Report On Biden Plan To Pay For Leftist Agenda, Experts Warn: \u2018It Is Insanity\u2019\">top capital gains rate<\/a> for those earning in excess of $1 million to 39.6% for long-term capital gains taxes. He also wanted to increase the 3.8% Obamacare investment tax to 5%, bringing the combined all-in rate to a hefty 44.6%, nearly double what the all-in rate is now for the highest earners.<\/p>\n<p>&ldquo;Biden&rsquo;s approach would have given the U.S. the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bidens-build-back-better-will-give-us-highest-top-tax-rate-of-any-country-in-the-oecd\/\" title=\"Biden\u2019s \u2018Build Back Better\u2019 Will Give US Highest Top Tax Rate of Any Country in the OECD\">highest top tax rate<\/a> on capital gains in the developed world, by far,&rdquo; McBride said.<\/p>\n<p>Biden&rsquo;s plan, if enacted, would have made the capital gains rate about the same as what ordinary income would be taxed at. One reason to have capital gains be taxed at a lower rate than ordinary income is to spur investment and encourage entrepreneurship.<\/p>\n<p>There were concerns about the Biden plan, particularly that it could dampen investment in the United States because it would have hiked the capital gains rate so high.<\/p>\n<h2 class=\"wp-block-heading\">Harris&rsquo;s capital gains proposal<\/h2>\n<p>Harris&rsquo;s plan to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/report-biden-admin-already-dropping-estate-tax-hike-from-economic-plan\/\" title=\"Report: Biden Admin Already Dropping Estate Tax Hike From \u2018Economic Plan\u2019\">raise capital gains taxes<\/a> isn&rsquo;t quite as ambitious as Biden&rsquo;s, but it would still be a noticeable change for high-earning investors, who are typically the ones making the biggest investments and starting up new companies.<\/p>\n<p>Harris has proposed raising the top capital gains rate for those earning in excess of $1 million to 28% for long-term capital gains taxes &mdash; less than Biden&rsquo;s proposal of 39.6%. She, like Biden, also is pushing to increase the 3.8% Obamacare investment tax to 5%, bringing the combined all-in rate for Harris&rsquo;s plan to 33%.<\/p>\n<p>While that 33% level for millionaires is more than 11 percentage points below Biden&rsquo;s proposed top rate of 44.6%, it would still represent the highest all-in top capital gains rate since 1978, something her critics fear would be harmful to business in the U.S. and to the country&rsquo;s economic growth.<\/p>\n<p>&ldquo;So her approach is not nearly as extreme as Biden&rsquo;s approach, but it&rsquo;s still quite extreme,&rdquo; McBride said. He noted that Harris&rsquo;s revised capital gains plan would give the U.S. the second-highest capital gains rate in the developed world after Denmark.<\/p>\n<p>Because the top rate proposed by Harris would kick in at $1 million and not at the current top threshold of $518,900, her plan would essentially be adding a new bracket for the highest earners to the tax code.<\/p>\n<p>Harris&rsquo;s proposed change, like any of her tax ideas, is designed to bring in revenue. Still, some of Harris&rsquo;s (and Biden&rsquo;s) other tax changes would raise more.<\/p>\n<p>&ldquo;It&rsquo;s not the biggest revenue raiser in the plan, but it does raise a decent amount of revenue,&rdquo; McBride said.<\/p>\n<p>Harris has backed several of Biden&rsquo;s previous tax proposals. Another controversial one that is part of that is taxing the unrealized capital gains of the wealthiest people, something that is being dubbed a billionaire minimum tax.<\/p>\n<p>The plan, first outlined in 2023, would impose a <a href=\"https:\/\/www.washingtonexaminer.com\/policy\/finance-and-economy\/3099902\/democrats-pay-steep-price-silicon-valley-putting-wealth-tax-wish-list\/\" target=\"_blank\" rel=\"noopener\" title>25% minimum tax<\/a> on the total income of those with assets greater than $100 million.<\/p>\n<p><strong><a href=\"https:\/\/www.washingtonexaminer.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a><\/strong><\/p>\n<p>The proposal, if it were to ever actually become law, is a massive departure from the current tax regime because gains would be taxed even if not realized. Under the existing tax code, billionaires and the very wealthy whose investments increase in value are taxed on that growth, known as capital gains, when those investments are finally sold off.<\/p>\n<p>While some on the liberal-left flank of the Democratic Party might get excited about such a sweeping and largely unprecedented change, the political reality, at least right now and presumably in the near future, is that this won&rsquo;t likely become law.<\/p>\n<\/div>\n<p> <script data-cfasync=\"false\" src=\"http:\/\/www.washingtonexaminer.com\/cdn-cgi\/scripts\/5c5dd728\/cloudflare-static\/email-decode.min.js\"><\/script><script>!function(){var g=window;g.googletag=g.googletag||{},g.googletag.cmd=g.googletag.cmd||[],g.googletag.cmd.push(function(){g.googletag.pubads().setTargeting(\"has-featured-video\",\"true\")})}();<\/script><script>var _bp=_bp||[];_bp.push({\"div\":\"Brid_1755244\",\"obj\":{\"id\":\"27789\",\"width\":\"1280\",\"height\":\"720\",\"stickyDirection\":\"below\",\"video\":\"1755244\"}});<\/script><script defer src=\"https:\/\/services.brid.tv\/player\/build\/brid.min.js\"><\/script><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Vice President Kamala Harris&#8217;s presidential campaign has unveiled a plan to increase capital gains taxes for the wealthiest individuals in the country. This proposal diverges somewhat from President Joe Biden&#8217;s own capital gains strategy. Harris aims to change how different income levels are taxed on capital gains, which are taxes applied when profits are made from selling assets like stocks or bonds. Her plan would modify the existing three tax brackets for capital gains: currently, those with taxable incomes up to just over $47,000 pay no capital gains tax (0% rate), while individuals earning up to $518,900 face a 15% rate. The highest earners above that threshold pay 20%, and with an additional 3.8% Obamacare investment tax for top earners, their effective rate is 23.8%. Both Biden and Harris advocate for higher taxes on the richest individuals&#8217; capital gains.<\/p>\n<p>According to Will McBride of the Tax Foundation, &#8220;Harris is carrying forward many ideas proposed by the Biden administration regarding capital gains,&#8221; particularly emphasizing a significant increase in the top tax rate.<\/p>\n<p>Biden had previously proposed raising the top long-term capital gains tax rate for those earning over $1 million to 39.6%, along with increasing the Obamacare investment tax from 3.8% to 5%, resulting in a total effective rate of approximately 44.6%. This would have positioned the U.S. as having one of the highest rates globally and aligned it more closely with ordinary income taxation rates\u2014a move intended to encourage investment but also criticized for potentially stifling it.<\/p>\n<p>Harris\u2019s proposal is less aggressive than Biden\u2019s but still represents a significant shift for high-income investors who typically drive major investments and entrepreneurship efforts. She suggests raising the top long-term capital gains tax rate for those making over $1 million to 28%, lower than Biden&#8217;s suggestion but still substantial; she also proposes increasing the Obamacare investment tax similarly as he did, leading her overall combined rate proposal to be around 33%. While this figure is notably below Biden\u2019s suggested maximum of nearly double that amount at 44.6%, it would still mark an all-time high since 1978\u2014raising concerns among critics about its impact on U.S businesses and economic growth.<\/p>\n<p>McBride noted that while Harris&#8217;s approach isn&#8217;t as extreme as Biden&#8217;s, it&#8217;s still quite significant; her revised plan could result in America having one of the highest rates among developed nations after Denmark due primarily because her new bracket starts at $1 million instead of $518,900.<\/p>\n<p>Harris aims not only at revenue generation through these changes but has also supported other proposals under consideration by both herself and Biden\u2014such as taxing unrealized capital gains through what some refer to as a billionaire minimum tax targeting individuals with assets exceeding $100 million at a minimum effective income level of 25%. This concept marks a considerable shift from current practices where such increases in asset value aren&#8217;t taxed until realized upon sale\u2014a change likely facing political hurdles before becoming law anytime soon<\/p>\n","protected":false},"author":3360,"featured_media":2340515,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/09\/BizCover.0918.webp","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[3620,40798,4021,40799],"class_list":["post-2340514","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner","tag-biden","tag-capital-gains","tag-harris","tag-investment-income"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/09\/BizCover.0918.webp","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2340514","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/3360"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2340514"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2340514\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2340515"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2340514"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2340514"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2340514"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}