Democratic presidential candidate Heather King proposed during an economic speech at a campaign event in New Hampshire on Wednesday (September 4th) to raise the long-term capital gains tax for the wealthy and those earning over $1 million to 28%, significantly lower than the 39.6% rate proposed by President Biden in the 2025 fiscal budget.
Currently, the highest total long-term capital gains tax rate is 23.8% – consisting of a maximum 20% long-term capital gains tax rate and a 3.8% Net Investment Income Tax (NIIT) that high-income earners are required to pay.
According to insiders, King’s proposed highest capital gains tax rate would be 33%, which includes the 28% capital gains tax rate mentioned by King on Wednesday, as well as a planned increase of the 3.8% NIIT to 5% based on Biden’s 2025 budget proposal.
In comparison, Biden’s plan aims to nearly double the current 23.8% highest rate to 44.6% (including a maximum 39.6% long-term capital gains tax rate and a 5% NIIT for high-income earners), aligning the capital gains tax rate with ordinary income tax rates.
King’s campaign team had previously fully supported Biden’s tax plan.
However, King adjusted her economic stance during Wednesday’s campaign event. She stated that the new rates are designed to encourage investment by American innovators, entrepreneurs, and small businesses to promote growth in these areas, saying, “If you earn a million dollars or more per year, under my plan, your long-term capital gains tax rate will be 28%.”
King also announced other economic policy proposals, including raising the tax exemption for new small businesses from $5,000 to $50,000.
The Trump camp criticized King’s economic policies as being too left-leaning and detrimental to American businesses.
In a statement to the Epoch Times, the Trump campaign team wrote, “Heather King and Walters’ tax plans will implement the largest tax hike in history, including raising personal income taxes, increasing corporate taxes, raising investment taxes, imposing unrealized gains tax, and expanding estate taxes, all of which will harm small businesses and corporate clients.”
Trump has not yet disclosed any capital gains tax proposals. He previously promised during the 2020 election to reduce the highest capital gains tax to 15%.