The billionaire hedge fund backing Trump says he will 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 hedge fund billionaire who backs Trump criticized Harris’ tax plans on a Fox Business segment.

• Paulson said a proposed tax on unrealized gains would “cause a mass selloff of almost everything.”

Billionaire hedge fund manager and Trump donor John Paulson told Fox Business he will sell his stock if Kamala Harris wins the presidency in November.

“I would go into cash and go into gold because I think the uncertainty about the plans that they have outlined would create a lot of uncertainty in the markets and probably lower markets,” Paulson said on “The Claman Countdown.”

Paulson focused specifically on Harris’ proposal to levy a 25 percent tax on unrealized gains for individuals above $100 million. He says such a move could trigger a major asset dump into the economy and a wider catastrophe for markets.

“If they implement a 25 percent tax on unrealized gains, that would lead to a mass selloff of almost everything: stocks, bonds, houses, art,” Paulson said. “I think it would result in a crash in the markets and an immediate, pretty quick recession.”

Despite Paulson’s gloomy take on the policy, the specifics of Harris’ proposal have yet to be confirmed. Kent Smettes, faculty director of the Penn Wharton Budget Model, recently told Business Insider that he could only confirm two firm policies.

The first is an increase in corporate income tax from 21% to 28%, and the second is an increase in the top rate for long-term capital gains to 28% for those earning more than $1 million. Much of the rest is hearsay based on media conversations with sources or the belief that she will accept Biden’s policies, he noted.

Meanwhile, former President Donald Trump has indicated he will extend the Tax Cut and Jobs Act, which is set to expire in 2025. The legislation cut the corporate tax rate to 21 percent, and Paulson characterized it as “very successful.”

Not all wealthy taxpayers are on Trump’s side.

Billionaire Mark Cuban took to X, formerly of Twitter, to compare how business would fare between Harris’ tax policy and Trump’s plans for high tariffs, concluding that Harris would offer more after-tax profits.

Moreover, many on Wall Street have scrutinized the idea of ​​Trump’s tariffs, fearing they could trigger higher inflation and spark trade wars. The Republican candidate has pledged to impose 10 percent tariffs on all US trade and has even suggested replacing the income tax with taxes.

The story continues

Paulson sees tariffs as an effective strategy, telling Fox Business it would be a powerful way to increase revenue.

Read the original article on Business Insider