Vice President Kamala Harris unveiled a new economic plan on Wednesday, proposing a 28% tax on long-term capital gains for households with an annual income of $1 million or more. This rate is lower than the 39.6% rate that President Joe Biden had previously laid out in his 2025 fiscal year budget.

During a rally in North Hampton, New Hampshire, Harris emphasized the importance of encouraging investment in America's innovators, founders, and small businesses. The Wall Street Journal was the first to report on Harris' capital gains tax proposal.

Currently, long-term capital gains, which are assets held for more than one year, are taxed at a maximum rate of 20%. With her new plan, Harris aims to strike a balance that rewards investment while generating revenue to fund her spending plans.

This announcement marks a divergence from Biden's economic platform, as Harris has typically aligned her proposals with the President's agenda. However, she continues to adopt Biden's aggressive stance against big corporations and supports his proposed tax increases as a means to pay for her proposed programs.

Nevertheless, there has been some pushback within the Democratic Party regarding certain aspects of the tax proposal. Representative Ro Khanna expressed concerns about a blanket tax on unrealized gains, which refers to taxing the potential gains accumulated by an asset before it is sold. Biden's proposal includes taxing unrealized gains for households worth at least $100 million. Khanna suggested potential unintended consequences for startup entrepreneurs that could hinder business growth.

In recent weeks, Harris has sought to position herself as a candidate supportive of businesses and the middle class while also denouncing corporate greed. In response, her Republican opponent, former President Donald Trump, has criticized her record and presented himself as the more viable option for the U.S. economy.

To counter these attacks, Harris has been rolling out targeted economic plans, with a particular focus on assisting businesses. Additionally, she announced a separate proposal to provide small businesses with a $50,000 tax deduction for startup expenses, ten times the current deduction level.

As the election season intensifies, both Harris and Trump continue to emphasize their divergent approaches to economic policy. The upcoming debate on September 10, hosted by ABC News, promises to be an important platform for the candidates to further present their economic visions for the country.