Sources: Harris plans to cut Biden's capital gains tax proposal

Harris, the Democratic presidential candidate in the United States, is planning to propose a reduction in the top rate of capital gains tax, breaking with the plan laid out by U.S. President Joe Biden in his budget blueprint earlier this year, according to sources familiar with the matter quoted by the Wall Street Journal. Harris' advisers have been discussing the move behind the scenes in recent days, the people said. Harris is scheduled to speak Wednesday afternoon local time in New Hampshire on promoting small businesses, but it is unclear whether she will discuss the capital gains tax proposal in her speech. Harris' advisers believe that Biden's proposal sets the tax rate too high, and that a more modest rate increase could better encourage investment in startups and help small businesses get funding, the people said. The people familiar with the matter also said Harris' allies believe the latest proposal is still in line with Harris' plan to make the wealthy and corporations pay more in taxes, which her advisers see as a more appropriate balance.