John Paulson, a Republican megadonor and hedge fund billionaire, said that he would withdraw his money from the stock market if Vice President Kamala Harris wins the next presidential election. He said this because he was “uncertain” about her economic policies.
The founder of Paulson & Co., John Paulson, talked to Fox Business host Liz Claman about how the Biden-Harris government wants to raise the company tax rate from 21% to 28% and the capital gains rate from 20% to 28%. Trump has thought about having Paulson be his Secretary of the Treasury if he wins the election.
“What makes the Trump administration different from Harris is very, very different,” Paulson said. “Trump is—wants to continue the current, very good tax policy that went into effect in 2017. That’s not what the Biden-Harris group wants, though. In order to make these changes, they want to raise the capital gains tax rate from 20% to 39%, and they changed their minds and now want to lower it back to 21%.”
Claman asked Paulson what the “next big bet” like his big bet on subprime mortgages would be. Paulson said it would depend on “who is in the White House.” He also said he would be worried if Harris wins the election and “pursues” her “tax plans and other economic plans.”
Paulson said, “Well, I would say it depends a lot on who is in the White House and who runs Congress. I’d be very worried if Harris wins and follows through on the tax and other economic plans she laid out. You brought up the tax on unrecognized gains. If they do put in place a 25% tax on unrealized gains, they will have to sell almost everything. Art, stocks, bonds, and houses. I believe it would cause the markets to crash and a slump to start right away.”
