Biden's proposed capital gains tax rate of 40% softened with Harris' plan for 28% tax.

• Kamala Harris suggested a lower tax rate of 28% on long-term capital gains for households with an annual income of $1 million or more, compared to the 39.6% rate proposed by Biden in his 2025 budget.
• Recently, Harris has been focusing on economic plans aimed at assisting businesses, particularly in preparation for the Sept. 10 debate against Trump, which was hosted by ABC News.
• Harris unveiled a plan to offer small businesses a $50,000 tax deduction for initial costs.

On Wednesday, Vice President Kamala Harris proposed a lower tax rate of 28% on long-term capital gains for households with an annual income of $1 million or more, compared to the 39.6% rate President Joe Biden had previously proposed in his 2025 fiscal year budget.

At a rally in North Hampton, New Hampshire, the Democratic presidential nominee announced a plan to tax capital gains at a rate that incentivizes investment in American innovators, founders, and small businesses. The Wall Street Journal was the first to report on this capital gains tax plan proposed by Harris.

Capital gains taxed at 20% for assets held over one year.

Harris' announcement marks a rare divergence from Biden's economic platform.

The Democratic presidential nominee has mostly aligned her economic plans with her boss's.

Harris has embraced the president's confrontational approach to large corporations and supported his plan to raise taxes on corporations to fund her own spending agenda.

Some parts of the corporate pressure campaign have faced opposition, including from within the Democratic Party.

"Rep. Ro Khanna, D-Ca., stated in a CNBC interview on Wednesday that he believes a blanket tax on unrealized gains is not a positive development."

Biden supports taxing unrealized gains for households worth at least $100 million, which is the same proposal that Harris has not announced any plans to diverge from.

Khanna cited potential unintended consequences for startup entrepreneurs that could stifle business growth.

Harris has been working to present herself as a friendly business face while simultaneously fighting against corporate greed and advocating for the middle class.

While Harris presents her economic plan, Trump, a former Republican president, has criticized her record and positioned himself as the superior candidate for the US economy.

Trump warned of a financial crash if Kamala gets elected, stating that it would be "not pretty" in a video posted to Truth Social during her New Hampshire rally Wednesday.

In preparation for the Sept. 10 debate against Trump, hosted by ABC News, Harris has been proposing more business-focused plans to counter attacks.

Harris unveiled a new plan on Wednesday to offer small businesses a $50,000 tax deduction for their startup costs, ten times the current amount.