US billionaire says will pull money from market if Kamala Harris wins election

One of the biggest fundraisers for former president and Republican presidential candidate Donald Trump said that he would pull his money from the market if his Democratic rival Vice President Kamala Harris is elected president in the upcoming presidential elections.

Billionaire John Paulson, a hedge fund manager and founder of The Paulson & Co., told FOX Business on Tuesday that Harris’s proposed economic policies are bound to scare investors. Paulson, who is known for profitably betting against the subprime mortgage market in 2007, was asked what his next big wager is going to be.

“Well, I would say it very much depends on who's in the White House and who controls Congress," Paulson responded. "I'd be very concerned if Harris is elected and pursues the tax plans and other economic plans that she articulated."

Harris has said she will increase corporate tax from 21% to 28% and also wants to increase capital gains rate from 20% to 28%. In contrast to her proposal, Trump has proposed extending the tax proposals he implemented during his presidential tenure in 2017.

Paulson told FOX Business that another proposal by Harris to increase tax to 25% on unrealised gains for people with a $100 million net worth or more will cause a mass selling of assets, including homes, stocks and art.

“I think it would result in a crash in the markets and an immediate, pretty quick recession,” he added.

Another avid Trump supporter and billionaire Elon Musk reacted to Paulson’s comments: “[Warren] Buffet is already planning for this outcome.”

US is nearing its presidential elections scheduled on November 5, with both the candidates polling not too far from each other. The race is expected to be on a knife’s edge and whether Paulson’s new bet will pay off remains to be seen.