Donors Press Kamala Harris to Abandon Proposed Tax on Ultra-Wealthy

Wealthy backers of Kamala Harris are expressing concerns about her proposal for a tax on ultra-rich Americans, according to a recent report. This proposed tax would affect individuals in the United States with a net worth of at least $100 million, requiring them to pay taxes on unrealized gains — an amount they have yet to realize from selling their assets.

Under the current system, capital gains taxes are imposed only when an asset is sold. Harris’s plan would change that by taxing increases in asset value, even if they remain unsold. An estimated 10,000 Americans would be subject to this tax, as reported by NBC News.

The proposal targets individuals who do not pay at least a 25 percent rate on their income and holds specific conditions for taxation. The tax would apply only if at least 80 percent of an individual’s wealth is held in tradeable assets.

However, the response from some of Harris’s financial supporters has been less than enthusiastic. According to the Times, sources close to the situation indicate that a number of her key donors have advised her to reconsider this proposal.

Donors have brought their concerns to Harris’s allies and campaign staff. Notably, at least one prominent donor has spoken directly with the vice president, suggesting alternative approaches, such as taxing the ultra-wealthy based on the loans they take against their wealth.

Despite these concerns, some other donors remain unconcerned about the proposed tax, pointing out that final decisions on policies have yet to be made.

Billionaire Mark Cuban, in his discussions with the campaign, emphasized the importance of Harris maintaining her values without rigid adherence to any specific policy. He mentioned, “From what I’ve been told, everything is on the table, nothing’s been decided yet.”

The Harris campaign has reaffirmed its position, stating that the vice president believes it is essential for billionaires and large corporations to pay their fair share of taxes, like everyone else. Secretary Charles Kretchmer Lutvak added, “They should have to pay a minimum tax rate because it’s not right that they pay a lower income tax rate than a teacher or firefighter.”

In terms of fundraising, the Harris campaign is witnessing significant support. In the final ten days of July, her campaign raised an impressive $310 million, a figure that far surpasses former President Donald Trump’s total of $138 million for the entire month. This financial surge was largely driven by grassroots supporters and first-time donors, particularly following President Joe Biden’s exit from the race and endorsement of Harris.

Additionally, Harris has put forth other tax measures, including a proposal to increase the corporate tax rate from 21 percent to 28 percent, a rate established during the Trump administration. This adjustment could potentially lead to a reduction in the deficit by $1 trillion over a decade, according to analyses from the Committee for a Responsible Federal Budget.

In a bid to create more equitable tax policies, Harris supports eliminating taxes on tips for those earning under $75,000 annually. This framework aims to prevent higher earners from exploiting the system while still benefiting lower-income workers.

The campaign for Kamala Harris remains active, with a range of tax proposals and a strong influx of donations positioning her as a significant contender in the political landscape.