Billionaire Hedge Fund Manager John Paulson Predicts Market Crash If Harris Wins – Here’s What He Said

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John Paulson, the founder and chairman of the hedge fund turned family office Paulson & Co., has been one of the most vocal supporters of former President and Republican nominee Donald Trump. He has also reportedly been considered for Treasury secretary, provided Trump is successful in the upcoming election.

The billionaire hedge fund manager first rose to fame in 2008 after making nearly $15 billion shorting the real estate market, making him legendary on Wall Street.

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Paulson has long supported Trump and was one of the biggest donors to his 2016 and 2024 campaigns. The 68-year-old Harvard graduate is estimated to have raised $48 million for the current campaign re-election of Trump.

Paulson vs. Harris

Paulson does not trust Harris because of her plans to raise corporate and personal taxes. Moreover, plans by the current vice president and the Democratic nominee to implement a “billionaire minimum tax” on unrealized capital gains have also been a source of scorn for the hedge fund manager.

“They want to raise the corporate tax rate from 21 to 28 percent, they want to raise the capital gains tax from 20 percent to 39 percent, and then they want to add a 25 percent unrealized capital gains tax,” Paulson said . “I think if they implement those policies, we’re going to see a crash in the markets, no doubt.”

Harris also proposed implementing a 28 percent tax on long-term capital gains for households with annual net income over $1 million and a 25 percent tax on unrealized gains for households with incomes over $100 of millions of dollars.

“If Harris is elected, I would take money out of the market,” Paulson said.

The billionaire investor also predicted an immediate recession if Harris wins this election season, similar to Trump’s claims of a 1929-like market crash.

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“If the Biden-Harris team comes in and should implement what’s in their platform, which is a windfall tax, that’s going to cause a massive selloff of homes, stocks, companies, art, and that could… . It immediately put us in a recession, so hopefully if they get elected they won’t pursue that,” Paulson said.

Some Wall Street analysts agree that rising corporate taxes could hurt publicly traded corporations, which have benefited from lower rates during the Trump administration. However, while a hit to the company’s earnings could lower share prices, none of the major S&P 500 companies expressed similar concerns.

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Paulson’s support for Trump’s tariffs

Trump has long advocated for tariffs, including plans to impose tariffs on Chinese imports of up to 60 percent to improve the domestic manufacturing sector.

“We’re going to be a tariff nation,” Trump said. “You’re going to see a mass exodus of manufacturing from China to Pennsylvania, from Korea to North Carolina, from Germany to right here in Georgia.”

While Wall Street worries about the broader ramifications of Trump’s “America First strategy,” Paulson sees it as a “necessity.”

“I think there is a desire, a need to decouple from China,” Paulson said. “That’s why I respect Trump for saying these things. Maybe he doesn’t articulate them so well all the time, but when I listen and look at it, I find he’s right,” he added.

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This article Billionaire Hedge Fund Manager John Paulson Predicts Market Crash If Harris Wins – Here’s What He Said originally appeared on Benzinga.com