“Biden’s new tax proposal is about the Democrats’ social agenda, not revenue“–Representative Mike Turner (R-OH)
Mr. Biden is planning the 1st major tax hike since Y 1993, a boost that could include an increase in the corporate tax rate and the individual rate for individuals earning over $400,000 per yr.
The changes will include the repeal of parts of former President Trump’s 2017 tax cut legislation and could include a 7-pt percentage increase in the corporate tax rate, from 21 to 28%, an expansion of the estate tax, and a raise in the capital gains tax for people earning more than $1-M per yr.
Clearly it is a signal that Democrats will look to high-income people and large corporations for revenue help fund the infrastructure investment package to come.
This in the wake of the American Rescue Plan that includes $1,400 in stimulus checks to Americans, an extension of unemployment benefits and funds for state and local governments, among other items. And, a slip in of $60-B worth of little-noticed tax hikes added late in the legislative process.
Mr. Biden’s tax plan features higher levies on corporations and wealthy Americans, with relief eyed for middle-class households, including those in the $110,000-a-yr income range.
You cannot grow the economy by hiking taxes, that is bad policy.
Tuesday, the benchmark US stock market indexes finished mixed at: DJIA -127.51 to 32825.95, NAS Comp +11.86 at 13471.58, S&P 500 -6.23 to 3962.71
Volume: Trade on the NYSE came in at 986-M/shares exchanged
HeffX-LTN’s overall technical outlook for the major US stock market indexes is still Bullish with a Very Bullish bias
- Russell 2000 +17.5% YTD
- DJIA +7.3% YTD
- S&P 500 +5.5% YTD
- NAS Comp +4.5% YTD
Looking Ahead: Along with the FOMC Rate Decision, investors will receive Housing Starts and Building Permits for February and the MBA Mortgage Applications Index Wednesday.
Have a happy St. Patrick’s Day, Keep the Faith!