Vice President Kamala Harris reportedly wants to force Americans to be taxed up to 44.6% of the profits they make from selling their homes. The report comes after Harris endorsed President Joe Biden’s Fiscal Year 2025 budget proposal.
The Wall Street Journal reported Harris’s support for the major tax increase on the capital gains generated from Americans selling their homes comes as part of Harris’ endorsement of Biden’s Fiscal Year 2025 budget proposal this week. The proposal would allow Americans to be taxed up to 44.6% on long-term capital gains if other tax increase proposals are implemented next year. According to the Internal Revenue Service’s website, any asset held by an individual for over a year and sold for a profit can be taxed by the government as a long-term capital gain.
According to the Post Millennial, the Biden-Harris proposal would represent more than a 100% increase on taxes for capital gains. Currently, the highest capital gains tax rate is 20%, while Americans making less than $492,000 per year are only taxed at 15%.
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Based on the White House’s proposal, Biden and Harris want the capital gains tax to be similar to the tax rate on wealthy Americans, leading to Americans making over $1 million being taxed up to 44.6% on capital gains. The Post Millennial noted that the 44.6% tax rate includes a 5% increase on the general net investment income tax rate and a top tax bracket rate of 39.6%. Both increases are included in the Biden-Harris administration’s budget proposal for 2025.
Yahoo Finance also reported that that Harris may also decrease the financial threshold for the estate tax, which is currently set at $13.61 million for a single American tax filer. Lawyer David Brillant told Yahoo Finance, “If Kamala Harris wins in 2024, I expect capital gains and estate tax rates will increase significantly.”
The Post Millennial reported that the Biden-Harris administration’s Fiscal Year 2025 budget proposal also includes a 25% wealth tax for Americans with over $100 million in assets. The outlet noted that the proposal could affect everyday Americans by forcing company owners to sell large amounts of shares, which could decrease the value of shares held by Americans as part of retirement investments.
