As we’ve discussed, the people of Wall Street are coming to terms and making peace with the growing probability that the party of Elizabeth Warren and Alexandria Ocasio-Cortez will soon have complete control of the federal law-making and –enforcement apparatus. As even Leon Cooperman recognizes, part of that is going to be a bigger tax bill, although as noted capitalist reformer Paul Tudor Jones notes, there will be at least some benefits to a blue wave that may soften that blow.
“I think that narrative around what will happen if we have that blue wave will be correct in the sense that next year you’re going to get a massive fiscal stimulus, you’re going to get a big boost to the economy. There’s no doubt that Main Street under this program is going to benefit,” Jones said on “Squawk Box.”
“But the other side of that is what also happens to financial assets. I think under a blue wave, and the Biden tax plan, financial assets over the long run suffer a great deal,” he said….
“I think the Biden tax plan is actually going to do exactly what it’s designed to do, which is to help Main Street, help the average American,” Jones said. “And it’s going to come at the expense of the 1%, primarily whose wealth is encapsulated in the stock market and financial assets.”
Well, Paul Tudor Jones may have made his accommodation with the coming commissars, but Paul Singer didn’t teach his acolytes to compromise. And while he may not be able to prevent that top tax rate from biting into their personal bottom line—not that he hasn’t tried—they can take evasive action to make sure it hurts as little as possible.
Elliott Management Corp…. plans to move its headquarters to West Palm Beach from Midtown Manhattan…. Singer’s co-chief investment officer and expected successor, Jon Pollock, owns a home near West Palm Beach and has been living there during the pandemic, said the people, who asked not to be identified because the information is private. The now-permanent move by Pollock, as well as several other senior employees, played a big role in the decision to shift the headquarters, said one of the people.
Elliott will keep its New York presence and also open an office in Greenwich, Connecticut. Billionaire Singer, 76, will stay in the Northeast.
During a debate Thursday in the New Jersey Senate over a bill that would increase the tax rate on residents with incomes of more than $1 million, Republican Sen. Joe Pennacchio used Tepper’s decision to domicile in Florida as an example of how the wealthy would flee New Jersey because of the higher tax rate…. “Just so you know, senator, he called me and told me. He said, ‘You’ve got an extra $120 million coming from me,’ so use someone else as an example,” [State Senate President Steve] Sweeney said, adding that Tepper returned “last January.”
Paul Singer’s $41 Billion Hedge Fund Moving Headquarters to Florida [Bloomberg]
‘You’ve got an extra $120 million’: David Tepper ditches Florida, moves back to New Jersey [Politico]
Tudor Jones sees a stock pop to start 2021 on stimulus, then pressure later from Biden tax plan [CNBC]