Hedge fund billionaire and Trump donor John Paulson says market would 'crash' under Harris tax plans

Published On Sep 13, 2024, 12:28 PM

John Paulson, a hedge fund billionaire and prominent Trump donor, has expressed concerns that the financial market would crash if Vice President Kamala Harris's proposed tax plans were implemented. These plans include raising the corporate tax rate from 21% to 28%, increasing the capital gains tax from 20% to 39%, and imposing a 25% tax on unrealized gains for households worth over $100 million. Paulson believes these changes would lead to a significant market downturn and potentially plunge the economy into a recession due to massive selling of assets. While some economists agree that higher corporate taxes could impact earnings negatively, none forecast the severe market crash that Paulson predicts. Paulson also contends that the tax policies proposed by the Biden-Harris administration could exacerbate economic issues, warning that the realization of these policies might directly lead to a recession.