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John Paulson, the founder and President of the hedge fund turned family office Paulson & Co., has been a couple of of the vocal supporters of former President and Republican nominee Donald Trump. He was also reportedly into consideration because the Treasury Secretary provided Trump succeeds throughout the upcoming election.
The billionaire hedge fund manager first rose to prominence in 2008 after making nearly $15 billion by shorting the housing market, making him legendary on Wall Street.
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Paulson has long supported Trump and was one among the largest donors to his 2016 and 2024 campaigns. The 68-year-old Harvard graduate is estimated to have raised $48 million for Trump’s current reelection campaign.
Paulson vs. Harris
Paulson distrusts Harris resulting from her plans to extend corporate and private taxes. Moreover, the present vice chairman and Democratic nominee’s plans to implement a “billionaire minimum tax” on unrealized capital gains have also been a source of contempt for the hedge fund manager.
“They need to boost the company tax rate from 21 to twenty-eight%, they need to boost the capital gains tax from 20% to 39% after which they need to add a tax on unrealized capital gains of 25%,” Paulson said. “I feel throughout the event that they implement those policies, we’ll see a crash throughout the markets, little doubt about it.”
Harris has also proposed implementing a 28% tax on long-term capital gains for households with a net annual income of over $1 million and a 25% tax on unrealized gains for households yielding over $100 million.
“If Harris is elected, I’d pull money from the market,” Paulson said.
The billionaire investor also predicted a direct recession if Harris wins this election season, very just like Trump’s claims of a 1929-like market crash.
“If the Biden-Harris team does may be found they typically were to implement what’s on their platform, which is a tax on unrealized gain, that is going to cause massive selling of homes, of stocks, of corporations, of art and that may … put us immediately right right right into a recession, so hopefully that throughout the event that they are elected, they’ll not pursue that,” Paulson said.
Some Wall Street analysts agree that raising corporate taxes could weigh on publicly traded corporations, which have benefited from lower rates through the Trump administration. Yet, while successful to company earnings could lower stock prices, not one of the vital thing S&P 500 corporations have voiced 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 as high as 60% to strengthen the domestic manufacturing sector.
“We’ll be a tariff nation,” Trump said. “You may note a mass exodus of producing from China to Pennsylvania, from Korea to North Carolina, from Germany to right here in Georgia.”
While Wall Street is nervous with regards to the broader ramifications of Trump’s “America First strategy,” Paulson believes this to be a “need.”
“I feel there could also be a desire, a must decouple from China,” Paulson said. “That is the rationale I respect Trump because he says these things. Possibly he doesn’t articulate them so well recurrently, but after I listen and look into it, I find he’s correct,” he added.
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This text Billionaire Hedge Fund Manager John Paulson Predicts a Market Crash If Harris Wins – Here’s What He Said originally appeared on Benzinga.com