Hedge fund billionaire John Paulson intends to withdraw his investments from the stock market should Kamala Harris win the presidential election. “If Harris was elected, I would pull my money from the market… because I think the uncertainty regarding the plans they outlined would create a lot of uncertainty in the markets and likely lower markets,” said the Republican donor.
“The difference between the Trump administration and Harris is very, very different,” he explains in a Fox Business interview. “The Biden-Harris group wants to change the corporate tax rate from 21 to 28 percent, and the capital gains rate from 20 percent initially to 39 percent, now back to 28 percent.”
Paulson is especially concerned about Harris’s proposed tax on unrealized gains, saying: “[I]f they do implement a 25 percent tax on unrealized gains that would cause mass selling of almost everything. Stocks, bonds, homes, art. I think it would result in a crash in the markets and an immediate, pretty quick recession.”
Taxing unrealized gains would mean that, for instance, shareholders would be taxed on the assumed value of their shares without them being sold. If they were ultimately sold at a loss, the shareholder would essentially have been legally overtaxed on the asset.
Even Democrat-aligned economists are worrying about Harris’s economic agenda. Jason Furman, Deputy Director of the National Economic Council under Barack Obama, warns her price control plans are “not sensible policy.”
