Kamala Harris to Pare Back Biden’s Capital-Gains Tax Proposal
Advisers believe a more-modest increase would balance taxing wealthy households and encouraging investment
WASHINGTON—Democratic presidential nominee Kamala Harris is planning to propose a less drastic increase in the top capital-gains tax rate, breaking with a plan President Biden outlined in his budget blueprint earlier this year, according to people familiar with the matter.
Harris’s advisers have been discussing the move behind the scenes in recent days, the people said. The vice president is set to speak Wednesday afternoon in New Hampshire about promoting small businesses, but it’s unclear if she will discuss the capital-gains proposal in those remarks.
A Harris campaign spokesman declined to comment.
Harris’s advisers believe the Biden proposal puts the rate too high and a more modest rate increase could better encourage investment in entrepreneurship and access to capital for small businesses, the people said. Harris’s allies argue the latest proposal still aligns with Harris’s plan for the wealthy and corporations to pay more in taxes, with her advisers viewing it as a more appropriate balance, the people said.