evidence: Why it matters: Harris' call for Americans making $1 million a year to pay a 28% capital gains rate marked a symbolic departure from President Biden, who prefers a higher 39.6% tax. [...] Flashback: For Biden, taxing capital gains as regular income — which is where the 39.6% rate comes from — has always been a matter of basic economic fairness. "We're going to get rid of the loopholes that allow Americans who make more than $1 million a year to pay a lower rate on their capital gains than working Americans pay on their work," he said in his first address to a joint session of Congress.