All taxes will be increased and Capital gains tax will be a big one going to 30 to 40% in my guesstament (because the rich need to pay their fair share). With the Capital gain tax increase the stock market will go dormant ( ie. very little trading) companies will lay off and reinvest less into then self's and just sit on the cash.
Cash is a position and business will just wait until cash is not the best position.
After all the tax increases tax revenues will drastically fall and the solution will be to raises taxes.
Suffice to say, I would move to cash ASAP and stop purchasing stocks if that appears to be the intended direction.
If your scenario comes to pass, we will be in a major Depression, probably worse than the original Depression, because people are so much less self-reliant. The permanent welfare class will riot or turn to crime, and the spoiled baby boomers will have their life’s savings wiped out.