Home Depot co-founder Ken Langone warned that Democratic presidential nominee Joe Biden’s tax plan will harm the middle class much more than wealthy Americans.

Langone recently told Fox Business Network that the middle class will feel the effects of Biden’s tax plan even though the former vice president has said the wealthy should pay more in taxes. Biden has said that the tax code should be more progressive and equitable and the former vice president has vowed to eliminate loopholes that favor the rich and large corporations.

“I don’t know if there’s any of us that have done well that will have a problem with paying more taxes, but it’s a ruse to think that hitting us and us alone is going to get the job done,” Langone said. “It won’t and the middle class will be in peril and when you take money out of the hands of the middle class, you do a dramatic impact negatively on the economy,” Langone said.

“The middle class will not be exempt,” he added. “Tragically, it will punish them. It isn’t going to punish us.”

Biden has proposed raising the capital gains tax rate from 20% to 39.6% for those making over $1 million. He would also increase the corporate income tax rate from 21% to 28%, Reuters has reported.

CNBC recently reported that under Biden's tax plan, people earning more than $400,000 a year could pay combined federal and state income taxes at rate of more than 62%.

The effective tax rate for the top 1% would increase from 26.8% to 39.8%, according to the Tax Policy Center, CNBC said.

Biden would have to win the presidency and his Democratic Party would have to gain control of the Senate and keep control of the House of Representatives in the Nov. 3 election for his tax proposals to become law. While far from certain, this prospect has been seized on by bankers hungry for new business.

Many investors in recent months have held that a second term for Trump, who favors tax cuts and deregulation, would be good for the stock market.

Investors view Biden as likely to raise taxes, especially if Democrats wrest control of the Senate from Republicans. However, a Biden presidency, coupled with a Democratic Senate, would likely mean a larger fiscal stimulus plan than what a Republican Senate would agree to, many investors believe, Reuters said.

However, it is unclear how Wall Street would react to the election outcome. In the run-up to the 2016 election, investors widely predicted that a Trump victory would hurt stocks due to his unpredictability and trade-war threats against China and Mexico.

With expectations that the increased use of mail-in ballots by voters concerned about the coronavirus could mean no immediate winner is announced, S&P 500 options show investors are bracing for volatility in November and December.

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