① Paulson recently stated that if Democratic presidential candidate Harris implements the proposed tax plan, the financial market will collapse and the economy will fall into recession; ② Earlier in the year, a source revealed that if Trump wins this year's election, he will recruit Paulson as Secretary of the Treasury.
Financial Services Association, September 14 (Editor Zhao Hao) John Paulson (John Paulson), an American billionaire and hedge fund manager, recently said that if Democratic presidential candidate Harris implements the proposed tax plan, the financial market will collapse and the economy will fall into recession.
Paulson, 68, invested in the hedge fund industry in the 90s of the last century, shorted mortgage securities of about 25 billion US dollars during the subprime mortgage crisis, and earned huge profits of 15 billion US dollars for customers. He is known as “the god of space on Wall Street” and “the first hedge fund person.”
Today, Paulson is also a “super donor” to Republican presidential candidate Trump. Earlier in the year, a source revealed that if Trump wins this year's election, he will recruit Paulson as Treasury Secretary.
On Friday (September 13), local time, Paulson said in an interview with the media that the Democratic Party wants to raise the corporate tax rate from 21% to 28%, raise the capital gains tax from 20% to 39%, and also levy a 25% tax on unrealized capital gains. “If these policies are implemented, there is no doubt that the market will collapse.”
It should be pointed out that the “39% capital gains tax” mentioned by Paulson is the 39.6% tax rate proposed by Biden in the 2025 fiscal year budget. Harris' proposal is to levy a 28% long-term capital gains tax on households with an annual income of 1 million dollars or more, and the tax rate is a compromise.
Paulson explained that if a specific plan to tax unrealized gains is implemented, the economy may soon fall into recession. “If the Biden-Harris team comes to power and implements the policies they have prepared, it will cause a large number of houses, stocks, companies, and art to be sold off, which may cause us to immediately fall into recession.”
Paulson anticipates that even if Harris is elected, the new administration will not continue to do so. It is worth mentioning that people close to the Harris campaign also said that Harris has no intention of taxing unrealized gains, and it is doubtful whether such a plan can be passed in Congress.
Referring to Trump's tax plan, Paulson believes that if the target of implementing tariffs is correct, it will not lead to inflation. He also said that lower corporate tax rates and capital tax rates will stimulate economic growth, help increase tax revenue and narrow the deficit gap.
During his first term, Trump also promoted “trickle-down economics” — allowing the government to cut taxes on businesses and the rich to encourage investment, promote economic development, and thus boost the government's total tax revenue.