In a significant statement, Republican megadonor and hedge fund billionaire John Paulson has voiced concerns over a potential Kamala Harris presidency, indicating that he would pull his investments from the stock market due to uncertainty surrounding her economic policies.
This is not just an offhand remark, but a serious warning from a key financial figure about the possible consequences of the Biden-Harris administration’s tax proposals.
In an interview with Fox Business host Liz Claman, Paulson, the founder of Paulson & Co., highlighted the stark differences between the economic policies of former President Donald Trump and Kamala Harris.
He specifically criticized the Biden-Harris administration’s plans to increase the corporate tax rate from 21 percent to 28 percent, as well as a significant hike in the capital gains tax, which was initially proposed to rise from 20 percent to 39 percent, before settling back at 28 percent.
“The difference between the Trump administration and Harris is very, very different,” Paulson remarked, drawing a clear line between Trump’s support for extending tax cuts from 2017 and Harris’s plans to reverse many of those policies.
Paulson expressed concern over the Biden-Harris tax agenda, arguing that such changes could destabilize the markets.
He warned that if a tax on unrealized capital gains is implemented, it could trigger widespread selling of assets, from stocks and bonds to homes and art, potentially causing a market crash and a swift economic recession.
His comments reflect a broader concern from financial experts and business leaders about how a Harris presidency could reshape the economic landscape.
When asked about his future investment strategy, Paulson was clear that the outcome of the 2024 election would be a deciding factor.
“It very much depends on who is in the White House and who controls Congress,” he said, indicating that political decisions will play a key role in his financial strategies.
Paulson further elaborated that under a Harris presidency, he would move his investments into safer assets like cash and gold, given the potential volatility the markets might face.
He emphasized that the uncertainty surrounding Harris’s economic plans could create instability, making markets unpredictable.
While Claman noted that people also withdrew from the stock market during the Obama and Trump administrations despite market growth, Paulson reaffirmed that his concerns stemmed from policy, not political ideology. “It depends on the policy,” he reiterated.
Paulson’s warning serves as a stark reminder of the economic stakes tied to the upcoming election. His concerns reflect not only the interests of wealthy investors but also point to broader implications for the U.S. economy.
As Americans look toward the 2024 election, Paulson’s remarks underscore the importance of economic policy in shaping the future financial landscape.
