Monday, Fox Business Network host Maria Bartiromo predicted a “sizable selloff” of stocks if 2020 Democratic presidential nominee Joe Biden wins the upcoming election over President Donald Trump.
Bartiromo explained on Fox News Channel’s “America’s Newsroom” that Biden’s remarks about taxes will lead to people selling before his planned GOP tax cut reversal and increase on capital gains tax.
“Joe Biden has said that he wants to raise taxes by $4.3 trillion. We’ve talked about this before. When you look at some of the taxes that he is expected to increase, Kamala Harris the other day said we are going to eliminate the tax cut plan and reverse it. That means all income levels see taxes go up because remember — the GOP tax cut legislation included a doubling of the standard deduction. If you remove that, that means all income taxes go up on all levels,” Bartiromo outlined.
“The capital gains tax is one that I’ve spoken about before. That right now is sitting at 23-plus percent. Joe Biden has said he wants to move that up to close to 44 percent,” she continued. “Now, that’s going to hit anybody who makes any money on anything you sell. So, you sell your portfolio a 44 percent tax. You sell your home; you’re going to get hit with a 44 percent tax. That means right after the election if Joe Biden were to win, I would expect a sizeable sell-off in the stock market just because people if they have made money, if they have gains on paper they are going to say, ‘Well, let me sell those gains now and capture my gains and get a 23 percent capital gains tax as opposed to a 44 percent tax,’ which is going to happen next year should those tax reversals go in place.”
Follow Trent Baker on Twitter @MagnifiTrent
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