Trump-supporting hedge fund billionaire says he'll pull his money out of the market if Harris wins the election
- John Paulson will sell his stocks and buy gold if Kamala Harris wins the presidency.
- The Trump-supporting hedge fund billionaire criticized Harris' tax plans on a Fox Business segment.
Billionaire hedge fund manager and Trump donor John Paulson told Fox Business that he will sell his stocks if Kamala Harris wins the presidency in November.
"I'd go into cash and I'd go into gold because I think the uncertainty regarding the plans they outlined would create a lot of uncertainty in the markets and likely lower markets," Paulson said on "The Claman Countdown."
Paulson was particularly focused on Harris' proposal to levy a 25% tax on unrealized gains for individuals worth more than $100 million. He says such a measure could trigger major asset-dumping across the economy, and broader catastrophe for markets.
"If they do implement a 25% tax on unrealized gains, that would cause mass selling of almost everything: stocks, bonds, homes, art," Paulson said. "I think it would result in a crash in the markets and an immediate, pretty quick recession."
Despite Paulson's gloomy view of the policy, the specifics of Harris' proposal have not yet been confirmed. Kent Smetters, the faculty director of the Penn Wharton Budget Model, told Business Insider recently that he's only been able to confirm two firm policies.
The first is a bump up in corporate tax from 21% to 28%, and the second is an increase to the top rate for long-term capital gains to 28% for those making above $1 million. Much of the rest is hearsay based on media discussions with sources or a belief that she will take on Biden policies, he noted.
Meanwhile, former president Donald Trump has indicated that he would extend the Tax Cut and Jobs Act, which is set to expire in 2025. The legislation lowered the corporate tax to 21%, and Paulson characterized it as "very successful."
Not every wealthy taxpayer is siding with Trump.
Billionaire Mark Cuban took to X, formerly Twitter, to compare how businesses would do between Harris' tax policy and Trump's plans for broad-sweeping tariffs, concluding that Harris would offer more in after-tax profit.
Further, many on Wall Street have scrutinized Trump's tariff idea, fearing it could spark higher inflation and trigger trade wars. The Republican candidate has pledged to apply 10% tariffs on all US trade, and even suggested replacing the income tax with duties.
Paulson sees tariffs as an effective strategy, telling Fox Business that it would be a powerful way to boost revenue.