- Vice President Kamala Harris is calling for a higher capital gains tax rate, and financial advisors have tips for top earners who could be affected.
- The presidential candidate proposed a 28% tax on long-term capital gains, or assets owned for more than one year, for households making more than $1 million annually.
- The plan is lower than the 39.6% rate proposed by President Joe Biden for the same group in his fiscal year 2025 budget.
Vice President Kamala Harris is calling for a higher capital gains tax rate, and financial advisors have tips for top earners who could be affected.
The Democratic presidential nominee has proposed a 28% tax on long-term capital gains, or assets owned for more than one year, for households making more than $1 million annually. This would be an increase from the current rate of 20% for top earners.
“We will tax capital gains at a rate that rewards investment in America’s innovators, founders and small businesses,” Harris said Wednesday at a campaign event in New Hampshire.
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While Harris’ tax policy has mostly aligned with President Joe Biden, her proposed capital gains rate is lower than the 39.6% rate proposed in Biden’s fiscal year 2025 budget.
The Harris campaign did not respond to CNBC’s request for comment.
‘We don’t make any changes until the law has passed’
Currently, investors pay 0%, 15% or 20% for long-term capital gains, plus an extra 3.8% net investment income tax, or NIIT, once modified adjusted gross income, or MAGI, exceeds $200,000 for single filers or $250,000 for married couples filing together. Harris’ plan would also increase the NIIT to 5%, The Wall Street Journal reported Wednesday.
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