Billionaire John Paulson, a hedge fund manager and founder of The Paulson & Co., pointed to Kamala Harris’ proposed economic policies, saying that they would cause a panic, prompting people to sell assets and eventually cause a recession.
In Short
- John Paulson criticised Kamala Harris’ proposed economic policies
- Harris plans to increase corporate and capital gains taxes
- Elon Musk also supported Paulson’s concerns on X
One of former President Donald Trump’s top fundraisers has stated that if Democratic Vice President Kamala Harris is elected president in the forthcoming presidential elections, he will withdraw his funds from the market.
Billionaire John Paulson, a hedge fund manager and the founder of The Paulson & Co., told FOX Business on Tuesday that Harris’ suggested economic policies are likely to alarm investors. Paulson, who is recognized for profitably betting against the subprime mortgage market in 2007, was asked what his next big bet will be.
“Well, I would say it very much depends on who’s in the White House and who controls Congress,” he replied. “I’d be very concerned if Harris is elected and pursues the tax plans and other economic plans that she articulated.”
Harris has stated that she intends to increase corporation tax from 21% to 28%, as well as the capital gains rate from 20% to 28%. In contrast to her suggestion, Trump has advocated extending the tax proposals he adopted during his presidency in 2017.
Paulson told FOX Business that Harris’s proposal to boost the tax on unrealised gains to 25% for persons with a net worth of $100 million or more will result in a massive sale of assets such as homes, stocks, and art.
“I think it would result in a crash in the markets and an immediate, pretty quick recession,” according to him.
Elon Musk, another staunch Trump supporter and billionaire, responded to Paulson’s statements, saying, “[Warren] Buffet is already planning for this outcome.”
The United States is nearing its presidential election on November 5, with both candidates polling close together. The contest is expected to be close, and it remains to be seen whether Paulson’s new bet will be successful.
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