Scaramucci Casts Doubt on Kamala Harris’s Tax Proposal and Offers Economic Predictions

In an exclusive interview with Saxo for their US Election Hub, Anthony Scaramucci expressed significant skepticism about the feasibility of a new tax proposal introduced by Vice President Kamala Harris. Scaramucci questioned the likelihood of the tax gaining traction within the Democratic Party and emphasized the broader implications it could have on the U.S. financial markets.

“Listen, that’s never going to happen,” Scaramucci asserted. “They don’t have enough Democratic votes to pass that. No Republican I know would vote for that. There’s many Democrats that would never vote for that.” He warned that such a tax could have a disastrous effect on trading behavior, potentially deterring investment and destabilizing the U.S. capital markets.

Turning to economic forecasts, Scaramucci predicted that the Federal Reserve might implement three 0.25% interest rate cuts by the end of the year, provided there are no unforeseen disruptions. He argued that these cuts are essential to maintaining market stability and ensuring that the U.S. dollar remains competitive on the global stage.

Scaramucci also critiqued the heavy reliance of the S&P 500 on the ‘Magnificent 7,’ the top tech giants that dominate the index. He suggested that antitrust actions aimed at breaking up these companies could foster greater innovation, drawing a parallel to the 1984 breakup of AT&T’s Bell System, which he believes led to significant technological advancements such as the internet and social media.

Despite recent turbulence in the cryptocurrency market, highlighted by the collapse of FTX, Scaramucci remains optimistic about digital assets. He acknowledged the damage to institutional trust but pointed out that firms like BlackRock continue to hold substantial investments in Bitcoin. “I think it’s damaged, but I also think that we have short-term memories,” he said, noting the enduring confidence in Bitcoin reflected by ETF holdings.

On the political front, Scaramucci indicated that Fortune 500 CEOs generally favor Kamala Harris over former President Donald Trump. He attributed this preference to a desire for more predictable and stable governance. Reflecting on his past support for Trump, Scaramucci stated, “I was once for Trump, I got to see up close and personal what he’s like. My conclusion was that he can’t be President again.”

Scaramucci’s comments offer a critical view on current political and economic issues, underscoring the challenges facing the Biden administration’s proposals and the broader implications for U.S. markets and governance.