Hedge fund billionaire and most prolific Trump fundraiser John Paulson said Tuesday he will pull his money out of the market if Vice President Harris wins the presidential election this fall, saying the Democrat nominee’s economic policies would spook investors.
Paulson, who created the Paulson & Co. investment company, said there are big differences between former President Donald Trump’s economic policies, and the policies that Harris has laid out so far. Among the major differences are raising the corporate tax rate from 21% to 28%, and increasing the capital gains rate from 20% to 28%.
“I’d be very concerned if Harris is elected and pursues the tax plans and other economic plans that she articulated,” Paulson told Fox Business host Liz Claman. “I think if Harris was elected, I would pull my money from the market. I’d go into cash, and I’d go into gold because I think the uncertainty regarding the plans they outlined would create a lot of uncertainty in the markets and likely lower markets.”
Another troubling economic policy from Harris, Paulson warned, is her proposal to impose a 25% tax on unrealized gains for individuals making $100 million or more.
“[It] would cause [a] mass selling of almost everything – stocks, bonds, homes, art – I think it would result in a crash in the markets and an immediate, pretty quick recession,” Paulson said.
Claman countered that the markets have done better than people expected with previous presidents, like Barack Obama, Trump, and President Joe Biden. But Paulson responded that timing can be everything, and that he was not prepared to risk his investments in the market based on what he’s seen of Harris’s proposals.