Kamala Harris Proposes New Tax Policies

Vice President Kamala Harris has announced a shift in tax policy during her campaign, proposing a 28% tax on long-term capital gains for individuals earning over $1 million, contrasting with President Biden's suggestion of 39.6%. This move aims to appeal to moderate voters while maintaining a stance on taxing the wealthy, although it has drawn criticism from progressive figures like Rep. Ro Khanna, who warned that such a tax could harm the startup ecosystem by forcing entrepreneurs to sell their companies. Khanna suggested that taxing loans against unrealized gains could be a more effective approach. Additionally, Harris is also advocating for a tax break for small businesses, raising the deduction from $20,000 to $50,000, which has previously faced opposition from Democrats. Critics have pointed out that Harris's proposals could lead to increased burdens on businesses and a potential deficit, raising questions about their overall feasibility. As Harris positions herself for the upcoming debates, her evolving tax strategies reflect a balance between appealing to her party's base and attracting undecided voters.