Billionaire investor Mark Cuban cautioned that Democrat presidential nominee Kamala Harris' proposed tax plan might severely impact the stock market during a recent appearance on CNBC's "Squawk Box," The Daily Caller reported.
Cuban warned that Harris' plan to raise capital gains tax could have detrimental effects on the stock market, potentially leading to long-term consequences for the U.S. economy.
"If you tax unrealized gains, you're going to kill the stock market," Cuban said.
"It's going to be the ultimate employment plan for private equity because companies are not going to go public ... you can get whipsawed."
While speaking in New Hampshire earlier this week, Harris proposed raising the capital gains tax rate to 28%, which is part of the Democrats' plan to address what they call wealth inequality and create a more balanced tax system. However, Cuban is among over 800 prominent venture capitalists and tech industry leaders who, while backing Harris' candidacy, argue that such a move could backfire.
The investor shared a personal anecdote, recalling when his net worth was high, but his cash reserves were low. Cuban suggested that under Harris' proposed tax plan, he would have had to borrow money just to cover his tax obligations, which he believes would have hurt his ability to focus on growing his business.
"Based on unrealized gains, I would have had to borrow money, and I effectively would have been in hock just to pay my tax bill instead of trying to run my company," he said.
Though Harris' proposal does not directly conflict with the current tax plan set by President Joe Biden, Cuban emphasized that fairness in taxation is essential. "To her, the value proposition is, we need to tax everybody fairly," he said.
During the interview, "Squawk Box" co-host Rebecca Quick challenged Cuban's stance, suggesting that Harris' campaign might be tailoring its messaging to different groups, including major donors. Quick questioned whether Harris was merely telling donors what they wanted to hear.
"She is absolutely, positively not just saying what her donors want to hear," Cuban said.
Quick pressed further. "If they won't say it publicly, say it publicly so we can hold you to it," Quick said.
Cuban acknowledged the point but maintained that Harris' team must thoroughly vet all details before announcing further specifics.
"Like any good CEO, you've got to do it when you get it right," Cuban concluded.
Jim Thomas ✉
Jim Thomas is a writer based in Indiana. He holds a bachelor's degree in Political Science, a law degree from U.I.C. Law School, and has practiced law for more than 20 years.
© 2024 Newsmax. All rights reserved.