Fox’s Bartiromo: A Biden victory would prompt ‘sizable sell-off’ on Wall Street

Fox Business Network’s Maria Bartiromo predicted that an Election Day victory by Joe Biden would prompt a “sizable sell-off” on Wall Street, citing the Democratic nominee’s plans for taxing capital gains.

“That means right after the election, if Joe Biden were to win, I would expect a sizable 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,” Bartiromo told “America’s Newsroom” on Monday.

Biden has proposed taxing capital gains at the same rate as ordinary income for people with income above $1 million, raising the top rate from 20 percent to 39.6 percent.

The Dow Jones Industrial Average has recovered most of the losses it suffered during the early days of the pandemic, and many market watchers have said they see Wall Street poised for gains regardless of who wins on Election Day.

Biden holds a small lead in the battleground states of Arizona, Florida, Michigan, North Carolina, Pennsylvania and Wisconsin, with the RealClearPolitics index showing a 2.7-point lead on the eve of Election Day. He has a bigger lead in national polls.