How a President Harris Would Tax the Wealthy

What You Need to Know

Harris holds to Biden’s promise of not increasing taxes on filers earning less than $400,000, according to Jeff Bush.
Massive new taxes — including a wealth tax — in a Harris administration are unlikely because there aren’t enough votes, says Greg Valliere.
In Harris’ tax plan, the stepped-up basis at death is curtailed, Bush said.

Democratic presidential nominee Kamala Harris is “doubling down” on President Joe Biden’s tax platform, according to Jeff Bush of The Washington Update.

The vice president ”holds to Biden’s promise of not increasing taxes on filers earning less than $400,000,” and her goal, like that of Biden and most Democrats, “is to reflect the growing U.S. income and wealth inequality realities inside the tax code,” Bush told ThinkAdvisor in a recent email.

“In other words, increasing the progressivity of the U.S. tax code … ‘Making the wealthy pay their fair share,’” Bush said.

“Anxiety is rising” among wealthy Americans, according to Greg Valliere, chief U.S. policy strategist at AGF Investments, “that massive new taxes — including a ‘wealth tax’ — are likely” in a Harris administration.

However, “that’s not the consensus on Capitol Hill, where there simply aren’t enough votes for big new taxes,” Valliere said in his recent Capitol Insights newsletter.

“Proponents of huge new taxes on the wealthy and profitable corporations would need Harris to win, the Democrats to take both houses, and a likely Constitutional challenge on a wealth tax to succeed,” Valliere wrote.

Chances of “steep new taxes are very slim for one major reason — the Senate is likely to flip back to the Republicans, who are strongly opposed to major new taxes,” Valliere said. “We think there’s a 75% chance that the GOP will take the Senate, even if Harris wins the presidency.”

Harris’ Tax Plan

Harris supports “a minimum wealth tax of 25% (taxing unrealized gains and income) on those with a net worth” of more than $100 million and a minimum tax for those earning over $1 million per year, Bush said.