Kamala Harris is pushing a policy that could require Americans to surrender nearly half of the profits from selling their homes, following her endorsement of Joe Biden’s Fiscal Year 2025 budget proposal. This comes amid ongoing criticism of her economic policies, including those related to price controls and inflation.
According to the Wall Street Journal, Harris has backed Biden’s budget plan, which proposes a potential tax rate of up to 44.6 percent on long-term capital gains if other tax increases in the proposal are implemented. This would significantly hike taxes on any asset held for over a year and sold for a profit, making it subject to long-term capital gains taxation.
Currently, the highest general capital gains rate is 20 percent, with a 15 percent rate for individuals earning under $492,000 annually. The proposed increase would more than double the existing capital gains tax rate, with few exceptions.
Harris advocates for aligning the capital gains tax with the income tax rate for wealthy Americans. Under this proposal, those earning over $1 million in taxable income could face a 44.6 percent tax on capital gains from assets like homes and dividends.
This proposed rate accounts for an increase in the general net investment income tax to 5 percent, along with a hike in the top income tax bracket to 39.6 percent—both measures supported by Harris.
Yahoo Finance reports that Harris is also likely to support reducing the threshold for the estate, or “death,” tax, currently set at $13.61 million for individual filers. Tax attorney David Brillant commented that if Harris wins in 2024, “capital gains and estate tax rates will increase significantly.”
Additionally, the budget plan includes a 25 percent wealth tax on those with over $100 million in assets. This could impact everyday investors, as owners of publicly traded companies with substantial wealth tied up in shares might be forced to sell significant portions of their stock to cover the tax, potentially driving down the value of the company and affecting retirement investments.
Richard Shinder, a contributor to The Hill, warned in July that Biden’s proposed wealth tax could force “asset-rich, cash-poor” taxpayers to sell assets to meet their tax obligations, potentially destabilizing asset and capital markets. He also expressed concerns about the administrative challenges and potential for abuse inherent in implementing such a tax.