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Harris to break with Biden on capital gains tax, proposing a smaller increase (www.cnn.com)
submitted 2 years ago by to c/politics@lemmy.world
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Vice President Kamala Harris proposed increasing the long-term capital gains tax rate to 28% 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%, plus an additional 3.8% 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% – for households with taxable income over $1 million. Harris, the people familiar with the matter say, believes 39.6% is too high.

While Harris still supports taxing the wealthiest individuals and corporations at higher rates – as Biden’s budget also calls for – she believes that a lower capital gains rate would incentivize investors to put more money into startups and small businesses. She has also proposed increasing the corporate tax rate to 28%, up from the current 21% rate set by Trump’s Tax Cuts and Jobs Act of 2017.

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[–] 101 points 2 years ago (3 children)

Harris, the people familiar with the matter say, believes 39.6% is too high.

for people already millionaires.

hey dems, you know why regular people hate you? this is why you conservative fucks

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  • [–] 18 points 2 years ago

    Long term capital gains isn't as big a problem as asset backed borrowing which needs to be fixed. No point in cranking realized gains that hard when unrealized loopholes are far worse and don't affect venture capital the same.

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  • [–] 11 points 2 years ago* (2 children)

    True - but understand - this is exactly what corporate news is trying to elicit. They’ve been trying things and waiting for the time to pounce to separate Harris from her momentum.

    CNN, remember, is the new Fox News.

    This is the latest. They know it’s going to work. When it does expect to see it more in other outlets.

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  • [–] 6 points 2 years ago (2 children)

    That and because the republicans will keep claiming they want to raise taxes and peopke dont like being taxed. Does it matter that its a tax increase that only affects the wealthy? No, as they too are a temporarily embarrassed millionaire.

    I do agree that capital income and earned income should be treated equally, but the politics of that make it more difficult.

    It might have been better to reduce the higher income tax by an equivalent amount to match a higher rate, so that the overall tax take is roughly similar, somewhere in the middle, but then shed be accused of helping billionaires.

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  • [–] 11 points 2 years ago (1 child)

    I really don't believe in the temporarily embarrassed millionaire. I just think people are that stupid. They hear tax increase and never look further.

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  • [–] 8 points 2 years ago* (1 child)

    These are the same people who believe getting a raise means you end up with less due to taxes

    Mind you, there is a hell pit where you make too much to qualify for assistance but not enough to afford existing, but that's not what I'm talking about.

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  • [–] 6 points 2 years ago

    That and because the republicans will keep claiming they want to raise taxes and peopke dont like being taxed.

    Gotta move to the right or the people who want us to move to the right will say mean things about us. Like they do no matter what.

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    • [–] 60 points 2 years ago (1 child)

    Capital gains tax being lower than income tax inverts the economy and just leads to a glut of capital owners. External capital ownership shouldn't exist in the first place, but if it does, it shouldn't be the cheapest way to earn money.

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  • [–] 13 points 2 years ago (1 child)

    I actually really agree with the removal of external debts backed by capital being a saleable item - market socialism where corporate ownership is forcefully devolved to the actual employees would enable much higher economic efficiency.

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  • [–] 9 points 2 years ago (2 children)

    Yup, that's why I'm a Mutualist. I think Spain has a pretty good setup that incentives ownership to be sold to it's employees.

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  • [–] 3 points 2 years ago

    Can you point me to a related law in spain about this?

    I've always figured that political democracy can't co-exist with capitalist plutocracy (when the corporate hierarchy is structured the opposite, top-down) but if there was a mandatory divestment where every business had to return x% of profits to the staff per annum and x% of ownership (e.g. based on a mix of value/wage/tenure) then that would reorient corporations to financially benefit a community and workers, and mitigate wealth inequality. The mandatory part is important as — like a strong minimum wage — it means all are competing on a level playing field and not with some inherent advantage/disadvantage.

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    • [–] 48 points 2 years ago (1 child)

    Just abolish capital gains tax and treat income as income.

    Don't discuss tip exemption. Just treat income as income.

    Then adjust the graduated scale to give low earners a fair relative burden and close off loop holes or set tax minimums.

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  • [–] 10 points 2 years ago (2 children)

    Ok, how about those who borrow against the value of stocks? Let's treat that as income too. Unrealized gains? Tax it.

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  • [–] 6 points 2 years ago (1 child)

    That's a tough one - borrowing against stock value has essentially become a cheat code for the rich to live lavish lifestyles without ever actually spending their own money so it'd be nice to close that hack... I'm just concerned there may be some side effect to such a policy that'd punish regular-ish folks - that might hit retirees hard, for example, by (effectively) forcing people to actually sell stock to meet expenses - even during market downturns.

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  • [–] 11 points 2 years ago

    Cool. Have a minimum on the tax then. Elon et al shouldn't be able to borrow millions or billions against their assets without paying a massive tax on it. Encourage them to sell the asset, realize the gains, pay the tax, and spend their money.

    Zero reason for Tesla to have the valuation it does.

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    • [–] 27 points 2 years ago (1 child)

    Whew! I thought we were gonna have a wildfire on our hands with all that red hot enthusiasm. Glad Kamala doused it.

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  • [–] [S] 8 points 2 years ago

    Of all the things to proactively announce you're different from Biden on, this was the issue she chose? Not saying anything and letting people assume what they'd like has been doing a lot of good work for the campaign, but there are definitely some issues she needs to break on. This wasn't one of them. Be optimistic while campaigning and let it be killed in the senate like we all know it will.

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    • [–] 13 points 2 years ago* (1 child)

    A neoliberal defending rich people? Say it ain't so! 🙄

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  • [–] 3 points 2 years ago (2 children)

    Gotta keep those campaign contributions flowing in.

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  • [–] 2 points 2 years ago*

    More likely is that even if she was a raging socialist at heart or something, she still has to get elected and because of Americas broken system that means she has to appeal to a very specific demographic of people in a select few states, because no one else really matters. And that's who statements like this is for, moderate republicans in swing states that are put off by Trumps incompetence but are scared about voting for a """" left wing""" candidate.

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    • [–] 11 points 2 years ago

    Motherfucker.

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    [–] 10 points 2 years ago

    And the donor class will force her to completely kill it.

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    [–] 9 points 2 years ago* (last edited 2 years ago)

    WTF

    Edit: Not that it will do any good but I just left a message at her campaign website.

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    [–] 7 points 2 years ago (1 child)

    I'm VERY GLAD Kamala Harris mentioned she supports Genocide and Helping the Rich! For a Second there I was actually OPTIMISTIC about the Future of this Country!

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    • [+] [B] -9 points 2 years ago

    CNN - News Source Context (Click to view Full Report)Information for CNN:

    MBFC: Left-Center - Credibility: High - Factual Reporting: Mostly Factual - United States of America
    Wikipedia about this source

    Search topics on Ground.Newshttps://www.cnn.com/2024/09/04/politics/kamala-harris-capital-gains-tax/index.html
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