Hedge fund billionaire and Republican megadonor John Paulson has revealed that he would remove his money from the stock market if Vice President Kamala Harris secures victory in the upcoming presidential election. This decision is rooted in the uncertainty surrounding her economic policies, which include an increase in the corporate tax rate from 21% to 28% and a raise in the capital gains rate from 20% to 28. In an interview with Fox Business host Liz Claman, Paulson discussed the significant difference between Trump’s administration, which seeks to extend current successful tax policies, and the Biden-Harris group, which proposes changes to corporate taxes and capital gains rates.
During their conversation, Claman inquired about what would be the next major investment similar to Paulson’s notable bet on subprime mortgages. The hedge fund manager explained that his decision would heavily rely on “who is in the White House” and which party takes control of Congress. He expressed concern over Harris potentially winning the election, implementing her tax proposals, and enacting a 25% tax on unrealized gains. This could lead to a significant market crash, as well as immediate recession.
Claman pointed out that people had previously withdrawn their investments from the stock market when Barack Obama and Donald Trump were in office; however, markets experienced growth during their administrations. When asked if he would be withdrawing his money from the stock market, Paulson confirmed that he would remove his investments if Harris were to win the election, due to uncertainty surrounding her economic plans and policies. The hedge fund manager believes that this uncertainty could result in a decline in markets and lower overall value.