The Blubber

"We will tax capital gains in a way that benefits America’s innovators, founders, and small businesses," the Democratic presidential nominee declared at a rally in North Hampton, New Hampshire. The Wall Street Journal was the first to report on Harris' capital gains tax proposal.

Currently, long-term capital gains—those from assets held for over a year—are taxed at a top rate of 20%.

Harris’ announcement signifies a notable shift from Biden’s economic agenda.

The newly selected Democratic presidential nominee has generally aligned her economic policies with those of her current boss.

Harris has embraced much of the president’s strong rhetoric against major corporations and had previously supported his budget's proposed tax hikes as a means to fund her own spending plans.

However, some elements of that corporate pressure campaign have faced resistance, including from within the Democratic Party.

Rep. Ro Khanna, D-Ca., voiced his concerns in an interview on CNBC’s “Squawk Box” on Wednesday, saying, “I don’t think a blanket tax on unrealized gains is a good thing.”

Khanna’s remarks were in reference to taxing the potential gains of assets before they are sold, a proposal supported by Biden. Harris has yet to reveal any plans to deviate from Biden’s proposal, which targets unrealized gains for households with at least $100 million.

Khanna highlighted potential negative effects on startup entrepreneurs, suggesting that such a tax could hinder business growth.