Warren's 'Wealth Tax' Won't Happen, Says Veteran Investor

A hedge fund owner Mark Mobius said that Democratic presidential candidate Elizabeth Warren’s “wealth tax” won’t be realized, even if she is elected to the Oval Office, CNBC reported Wednesday.

Benzinga · 11/13/2019 10:21

A hedge fund owner Mark Mobius said that Democratic presidential candidate Elizabeth Warren’s “wealth tax” won’t be realized, even if she is elected to the Oval Office, CNBC reported Wednesday.

“I don’t think this wealth tax is going to be a big deal, frankly,” the veteran investor who retired from the investment firm Franklin Resources, Inc. (NYSE: BEN) last year told CNBC. “Because if you look at who’s giving money to Warren: wealthy people.” 

“[The wealthy people funding Warren] realize that it’s [just] talk,” Mobius added. 

“At the end of the day, when it comes to actual action, it’s not going to be significant. I don’t see a wealth tax coming in.”

Stock Market Will Tank If Trump Isn’t Elected

Mobius further provided clarity on his earlier remarks that Warren’s election will tank the stock market by 20% to 25%.

He told CNBC that his prediction has nothing to do with Warren, but a lot to do with Donald Trump’s reelection.

“Trump policies have been so beneficial to the economy that any change, people will begin to say: ‘let’s hold back and wait,’ and then you have a correction,” Mobius said.

Warren’s Wealth Tax

Warren has proposed an “ultra-millionaire tax” policy wherein some of the wealthiest people in the U.S. will share an increased burden of tax, “two cents” on each dollar above the net worth of $50 million to be precise.

The proposal has invited criticism from a growing number of billionaires, including Microsoft Corporation (NASDAQ: MSFT) co-founder Bill Gates, Facebook Inc (NASDAQ: FB) CEO Mark Zuckerberg, and JPMorgan Chase & Co (NYSE: JPM) CEO Jamie Dimon