Harris to propose smaller hike in capital gains tax than Biden, senior aide says

Portsmouth,New Hampshire: Democratic presidential candidate Kamala Harris will propose a smaller increase in the top capital gains tax rate than the 39.6 per cent rate proposed by President Joe Biden, a senior aide said on Wednesday.

Vice President Harris arrived in Portsmouth, New Hampshire, on Wednesday afternoon for a campaign event where she will make the announcement and also unveil a $50,000 tax deduction for new small businesses as she works to win over independent voters and Republicans skeptical of former President Donald Trump.

Harris's proposal to reduce the top rate eyed by Biden suggests she wants to appeal to a broader base of voters even as she sticks with most of Biden's plans to strengthen the middle class. Harris became the Democratic nominee after Biden stepped aside on July 21.

In his fiscal 2025 budget, Biden had proposed raising the tax rate on long-term capital gains - the profits made from selling or trading an asset held for more than a year - to 39.6 per cent from the current rate of 20 per cent at most for those earning over $1 million annually.

The vice president's proposals are part of a broader economic policy package that is aimed at stimulating continued US economic growth, a campaign official said. Small businesses are major employers and have created 70% of net new U.S. jobs since 2019, according to government data.

Recent polls show Harris with a four to six percentage point lead in the state over Trump, her Republican rival in the Nov 5 election. New Hampshire has backed a Democratic candidate in every presidential election since 1992, except for former President George W. Bush’s 2000 win. Biden beat Trump in the state by seven percentage points in 2020.

Trump spokesperson Karoline Leavitt denied a news report that Republicans had given up on the state and said Trump's campaign had an on-the-ground presence, office and staff there.

"Kamala Harris is parachuting in because she knows that the Granite State is in play," she said. "No amount of campaigning in New Hampshire will make up for the fact that Kamala Harris’ support for Bidenomics is crushing them. Energy prices and inflation are up while profit margins and small business optimism are down — and Kamala Harris is to blame.”

Harris will appear at a brewery, joined by elected officials and a leader of a "Republicans for Harris" group in New Hampshire, where 330,000 registered independents outnumber the 258,000 registered Democrats and 301,000 registered Republicans.

Harris' campaign said the proposed tax deduction for small businesses offers a tenfold increase over existing relief for new small businesses, which cost about $40,000 to start.

The Treasury on Tuesday said the US was averaging 430,000 new business applications per month so far in 2024, up 50 per cent from 2019, the last pre-Covid year of Trump's administration.