Stock market would crash under Harris' tax plan, billionaire hedge fund manager warns

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Kamala Harris' proposed tax on unrealized capital gains is the 'big one' markets must watch out for, according to likely Trump Treasury secretary nominee John Paulson.

A potential Trump nominee for U.S. Treasury secretary, who also happens to be a billionaire hedge fund manager, has explained how Vice President Kamala Harris’ tax plan could send markets into a quick plunge. "In the early parts of her campaign, she was supportive of the tax on unrealized gain. And if that was implemented, I think it would be devastating for the markets and cause a market crash," Paulson & Co.

But if Harris were to win the 2024 presidential election, Paulson expressed fears over the macroeconomic implications of her tax policies, which include a 25% "minimum" tax on wealthy households and increasing taxes on capital gains and dividends for households making more than $1 million from 20% to 28%.

Business’ Eric Revell contributed to this report.

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