According to a CNBC Yun LI report, hedge fund billionaire John Paulson, known for his successful bets on the housing market during the financial crisis, recently warned that Vice President Kamala Harris' tax plan could lead to a financial market crash and recession. Paulson, a supporter of former President Donald Trump, shared his concerns in an interview on CNBC's Money Movers program.
According to CNBC, Paulson criticized Harris' plans to raise the corporate tax rate from 21 percent to 28 percent, the long-term capital gains tax from 20 percent to 39 percent, and a 25 percent tax on unrealized gains. He predicted that the implementation of these policies would lead to a market crash and stated that there is no doubt about it.
Harris proposed a 28% capital gains tax for families with annual incomes of $1 million or more, which is lower than the 39.6% rate proposed by President #Joe Biden for fiscal year 2025.
According to CNBC, Harris previously supported President Biden's proposed 25% tax on unrealized gains for families with incomes over $100 million, also known as the minimum tax for millionaires. However, investor Mark Cuban and others close to the Harris camp have said that the Harris camp is not interested in taxing unrealized gains, and there are doubts that such a proposal could pass through Congress.
CNBC notes that Paulson, who made his millions betting on mortgage bonds during the financial crisis, is also an adviser to President Trump, and the idea of a U. S. sovereign wealth fund has reportedly been discussed. Paulson was a major contributor to Trump's 2024 election campaign.
the investor also expressed concern that the economy could fall into recession if a proposed tax on unrealized gains is implemented. According to CNBC, Paulson warned that such a tax could cause a massive sell-off of assets such as homes, stocks, businesses and art, leading to a recession.
Some Wall Street economists quoted by CNBC agree that raising the corporate tax rate from the 21% rate set during Trump's presidency could hurt S&P 500 earnings and stock prices. However, they do not foresee a massive recession like the one Paulson is talking about.
Read us at: Compass Investments