New York (CNN Business) — A blue wave in November could wipe out the tax overhaul that padded Corporate America’s bottom line and set off a boom on Wall Street.
Biden wants to undo Trump’s tax cuts. That could rattle Wall StreetBusiness & Finance News
Joe Biden, the presumptive Democratic presidential nominee, has proposed lifting the corporate tax rate to 28%. That would reverse half of the cut from 35% to 21% that was enacted by President Donald Trump in late 2017.
Goldman Sachs warns that Biden’s tax plan, combined with an expected drag on GDP, would lower next year’s S&P 500 per-share earnings by $20 to $150.
“Although the coronavirus has caused the sharpest decline in economic activity on record, in some ways tax policy represents a larger risk to earnings and consequently to equity prices,” David Kostin, chief US equity strategist at Goldman Sachs, wrote in a note to clients published Friday.