From CNBC: 2024-09-13 12:28:38

Hedge fund billionaire John Paulson warns of potential market crash and recession if Kamala Harris’ tax proposals are implemented, including raising corporate tax rate to 28% and capital gains tax to 39%. Harris has endorsed plans like a 25% tax on unrealized gains for wealthy households, but there are doubts it would pass Congress.

Paulson, known for betting against housing market before financial crisis, advises Trump on economic policy and warns of potential recession if unrealized gains tax is implemented. Wall Street economists express concerns with Biden Harris tax plans impacting market and economy if enacted.

Paulson believes raising corporate tax rates could reduce S&P 500 company earnings, but experts question the extent of the impact and fear Trump’s policies could also have negative effects. Trump considers Paulson as potential Treasury Secretary, highlighting differences in economic philosophies between the two.

Some experts argue that Paulson’s predicted market collapse from tax changes is overstated, while others worry about inflation and budget deficits under Trump’s economic policies. Paulson remains optimistic about the potential benefits of lower taxes on economic growth and deficit reduction if implemented correctly.

Read more: Hedge fund billionaire and Trump donor John Paulson says market would ‘crash’ under Harris tax plans