Kamala Harris’ Tax Proposal Could Trigger Market Freefall

Billionaire Hedge Fund Manager: Harris’ Unrealized Gains Tax Would Sink the Market

Kamala Harris has set her sights on capital gains, corporate profits, and even unrealized investments with a whole new breed of taxes designed to extract wealth and consolidate control. John Paulson, founder of Paulson & Co. and an advisor to Trump, issued a blunt warning on Cavuto: Coast to Coast: “If Harris’ tax on unrealized gains goes through, it would be devastating for the markets and cause a market crash.” You know, those paper profits in your portfolio you haven’t actually cashed in on? Yeah, Harris wants a slice of those too. A tax on money that isn’t even in your hands yet—just think about that.

Harris wants to hike capital gains taxes from 20% to 28%, jack up the corporate tax rate from 21% to 28%, and impose a “minimum” 25% tax on wealthy households, along with targeting dividends. Paulson’s assessment? A recipe for a market implosion, plain and simple. Yet to the political elite, this would be a great consolidation of wealth and power, disguised under the shiny wrapper of “fair share.”

The Billionaire’s Warning: This is No Simple Tax Hike—It’s a Financial Landmine

Paulson isn’t mincing words, folks. He’s saying these tax hikes wouldn’t just "cool down" the market; they’d blow it apart. Americans could be facing combined state and federal rates that exceed 50% on income—meaning over half of what you earn could be siphoned off. And here’s the kicker: you’re being taxed not just on what you make, but what you could potentially make. Paulson argues, "When you raise taxes across the board, it has a negative effect on capital and a negative effect on the stock market." In other words, this plan doesn’t just slow down investments—it sabotages them.

The Bigger Picture: A Move Toward Total Economic Surveillance?

Paulson and others see what most of us should be asking: if they can tax wealth before it’s even realized, what’s stopping them from diving further into surveillance and control over personal finance? This isn’t just about revenue—it’s about creating a paper trail on every dollar you might or might not make. The implications are sinister: digital currencies, already inching closer to the mainstream, could make taxation and surveillance a seamless, unstoppable system.

If these plans pass, the government won’t just be tracking your every move; they’ll be claiming a slice of your potential future income—money you might not even see. And if you think this kind of centralized economic control won’t come for you, think again. Harris’ administration wouldn’t be about protecting the middle class; it would be about enforcing a financial panopticon that puts you, your assets, and your financial independence firmly under their thumb.

A Warning from Wall Street: ‘Doomsday Machine’ for the Economy

It’s not just Paulson. Scott Bessent, another Wall Street heavyweight with experience at Soros Fund Management, called Harris’ tax proposal a “doomsday machine.” And make no mistake—this isn’t hyperbole. The massive hikes on corporate and personal investment gains, as well as the proposed minimum 25% tax on households making over a million dollars, would crush growth, tank investments, and slow hiring. Think about your 401(k), your retirement savings, or any future dreams of financial freedom—they’d all be collateral damage.

Playing Both Sides: Harris vs. Trump’s Economic Policies

For every alarm Harris raises, Trump’s policies have touted relief for working families by eliminating taxes on tips and overtime, aiming to ease the burden on those struggling with inflation. Meanwhile, Harris’ approach would do the exact opposite, squeezing capital and crushing growth with her so-called “redistribution.” And you can bet that if Harris gets her way, that market crash won’t just hit Wall Street—it’ll hit Main Street, in the form of higher costs, job losses, and diminished opportunities.

The Real Cost: More Deficit, More Debt, Less Freedom

Here’s the irony: both Trump and Harris’ spending plans, according to the Committee for a Responsible Federal Budget, are set to add trillions to the national debt. Harris’ tax-and-spend policies alone are projected to rack up an additional $3.95 trillion over a decade, while Trump’s spending could add up to $7.75 trillion. Either way, these figures spell a growing deficit—and the question becomes, who pays? Spoiler alert: it’s not the people drafting these bills. The cost will fall squarely on you, the American taxpayer, and on generations to come.

Derek’s Final Word

The stakes are high, and the writing’s on the wall: Harris’ tax plans aren’t about progress—they’re about control. They want to track your money, take a cut before you even get it, and shut down financial independence as we know it. What can you do? Don’t just stand by and watch this play out. Protect yourself before the next crash. Download Seven Steps to Protect Yourself from Bank Failure by Bill Brocius to arm yourself with real strategies for the storm ahead. Get it here.