Harris' proposal for a 28% capital gains tax should be higher

Sen. Bernie Sanders (I-Vt.) said Sunday that Vice President Kamala Harris should raise her proposed 28% tax rate on long-term capital gains, marking his latest departure from the Democratic presidential nominee's economic platform.

“I would go even higher,” Sanders said on NBC's “Meet the Press” of Harris' proposed capital gains tax rate. “I think she's trying to be pragmatic and do what she thinks is right to win the election. My own view is a little different.”

Harris announced her plan on Wednesday to tax long-term capital gains, i.e. assets held for more than a year, at 28 percent, an increase from the current maximum tax rate of 20 percent.

This proposal softened the party's line on tax reform.

President Joe Biden had already proposed a capital gains tax rate of 39.6% in his budget for 2025. Sanders had campaigned for the Democratic presidential nomination in 2016 with an even higher tax rate of 54.2%.

Sanders said Harris' economic program must go further in taxing the rich.

“I think what the vice president needs is a strong agenda that speaks to working people,” he said.

Sanders has also remained steadfast in his opposition to the political influence of billionaires, even though Harris has relationships with major donors. She has also received support from Mark Cuban, LinkedIn co-founder Reid Hoffman and dozens of other wealthy business leaders.

“Am I worried about the influence of billionaires on the Democratic Party? I really am, just as I am worried about the influence on the Republican Party,” he said.

Since Harris launched her campaign in July after Biden dropped out and endorsed her, Sanders has supported Harris but has shown only lukewarm support for her economic policy proposals.

In addition to tax reform, Sanders openly opposed Harris's move away from support for Medicare for All, the proposal to provide free universal public health care to all Americans that she supported during her first presidential run in 2019.

Harris has moved away from some of her more progressive stances from 2019 to appeal more to the undecided, moderate voters who are likely to decide the election.

For example, the vice president welcomed the support of former Republican Vice President Dick Cheney and his daughter, former Rep. Liz Cheney, the latest in a string of prominent Republicans to oppose the Trump-led party.

As Harris tries to win broad centrist support, Sanders' lukewarm enthusiasm for her economic program could work to her advantage. By providing a contrast to one of the most progressive members of Congress, the distance between Harris and Sanders helps the Democratic candidate defuse Trump's attacks calling her a “radical left-wing nutcase.”

Despite their policy differences, Sanders supported her campaign and showed more zeal in pursuing her goals of creating more affordable housing and strengthening union protections.

“So yes, their views are not mine, but I think they are progressive,” Sanders said.