Markets

Leon Cooperman says the stock market would drop 25% if Elizabeth Warren is elected

Key Points
  • "If Elizabeth Warren is elected president, in my opinion, the market drops 25%," billionaire Leon Cooperman tells CNBC.
  • Warren calls for an annual 2% tax on wealth over $50 million.
  • "You don't make poor people rich by making rich people poor," Cooperman says, citing Winston Churchill.
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Leon Cooperman: The stock market would drop 25% if Warren or Sanders is elected

Billionaire investor Leon Cooperman took aim on Wednesday at what an Elizabeth Warren presidency would mean for the stock market.

"If Elizabeth Warren is elected president, in my opinion, the market drops 25%," Cooperman told CNBC's "Squawk Box." "Bernie Sanders, same thing."

Warren has risen in some recent polls to the top of the crowded Democratic field. Her wealth tax has become a rallying force. It calls for an annual 2% tax on wealth over $50 million and 3% on wealth over $1 billion. Taxpayers would be expected to estimate the current value of everything from cars to real estate to art, private equity portfolios and private businesses.

Cooperman, chairman and CEO of Omega Advisors, takes issue with what he calls Warren's "war on billionaires."

"I believe in a progressive income tax structure, I believe rich people should pay more, I have no problem with that. This wealth tax is baloney," said Cooperman.

"You don't make poor people rich by making rich people poor," he added, citing Winston Churchill. "The main vice of capitalism is the unequal distribution of prosperity, the main vice of socialism is the equal distribution of misery."

Warren said at Tuesday night's Democratic debate that she doesn't have a "beef with billionaires," but added that if you make it to the top, you need to pitch in to help other children reach the same opportunity.

"Education and faster economic growth is the answer," to the country's inequality problem, said Cooperman. "At the end of the day, capitalism is what distinguishes America."

Cooperman has previously addressed a Warren presidency. "There's unquestionably a shift to the left in this country," Cooperman said last month. "They won't open the stock market if Elizabeth Warren is the next president," he joked.

Warren's office did not respond to CNBC's request for comment.