Posted on 07/09/2020 2:20:06 PM PDT by lasereye
Details on how former vice president Joe Biden would rebuild the U.S. economy in the wake of the COVID-19 pandemic if he were elected president in November hit the newswires on Thursday. And one thing was confirmed for many market watchers: A Biden presidency may not be so great for stock prices.
“Biden will ensure that corporate America finally pays their fair share in taxes, puts their workers and communities first rather than their shareholders, and respects their workers’ power and voice in the workplace,” a Biden campaign email memo wrote Thursday. Titled “Build Back Better,” the plan is in line with many traditional Democratic efforts around expanded social safety nets and infrastructure investments.
To help pay for it all, Biden is keen on reversing President’s Trump’s signature corporate taxes to businesses that prior to the pandemic, had helped send stock prices to record highs.
Investment bank Credit Suisse estimates this change in taxes would increase the effective rate by 4% to 5%, and slash $9 off estimated S&P 500 earnings per share. Goldman Sachs has projected that Biden’s tax plan would lead it to reduce its 2021 earnings estimate by 12%.
Theoretically, those estimate revisions would put marked pressure on stock prices.
“There’s a problem. It’s all after-tax. That’s unfortunate but at the end of the day, the money you put in your pocket is after-tax. You need to put more money in your pocket. It [the Biden plan] means that stocks — all things being equal — would be lower by 25% than they are today. It may not work that way. That is at least the theory,” explained SMH Group CEO George Ball on Yahoo Finance’s The First Trade.
“Certainly Biden’s tax plan is a headwind for the market,” said Momentum Advisors chief investment officer Allan Boomer.
(Excerpt) Read more at finance.yahoo.com ...
A lifetime of work at a people’s ...
Slaves to deep state.
Corporations don’t pay taxes; people pay taxes.
“Seriously, I wonder what the markets will do before the election.”
If Biden wins on November 3, you will see the greatest sell-off in history on November 4.
I’ll be 70 next year, and I was going to wait until I was 72 before I’d start withdrawing from my IRAs (because that is when the RMD kicks in). I am seriously considering withdrawing a chunk of my stock holdings before the election, and paying the taxes on that withdrawal, before the value collapses. I’m keeping a close eye on all of this sh!t, as we are headed into some “interesting” times.
Let's wipe out the value of stocks (your retirement plan) and penalize corporations making a profit.......then maybe you can lose your job and pay higher prices.
You know, for the communities and stuff.
“whether to have lime or orange jello.”
Have you forgotten already?
Jello???
Maybe boiled bone and sugar generic goop?
Not Jello the Bill Cosby product.
That said, “The $75 Car” is still funny, I just can’t admit it.
https://www.youtube.com/watch?v=CEGh-3EBhAg
He wants to create union jobs. For people who don’t want to belong to a union, too bad. Just like he is pandering to the NEA and would try to force all kids to attend public schools, and will try to reimpose all the controls of Obamacare. Everything is about controlling our lives.
I have the opposite take. Wall Street will be very comfortable with Biden in the White House. He’s a corrupt old asshole who has spent 50 years selling himself to corporate interests all over the globe.
Biden is a puppet, and the only question is who will be pulling the strings. Will it be the wacked-out Maoists or will it be Wall Street?
Given the history of left-wing revolutions and how they always devolve into terror and mass destruction, I suspect that Wall Street is making a big mistake.
Wall Street got their DNC puppets to pull the rugs out from every presidential contender other than this crooked, senile, racist old retardate. Some “revolution” those Democrats have going on there.
No. The stock market started rocketing higher right after Trump’s win in 2016.
Comfortable with higher income taxes, higher capital gain taxes and higher stock transaction taxes?
Why would they be comfortable with that?
Wall Street sure knows how to buy their politicians.
Always remember that one item from the Wikileaks dump regarding Hillary Clinton's speech to the Goldman Sachs executives. She made it blatantly clear that it was necessary for her to lie on the campaign trail to get elected -- while never following through on any of the stupid leftist schemes she was peddling that would decimate Wall Street.
That's a strange remark. So if the President hasn't been "bought" by Wall Street, then the stock market would go down I take it. Why would that be?
Give some examples.
Doesn’t matter.
This brain dead son of a bitch will NEVER be president.
Nu Pagodi. Russian cartoon title for ‘just you wait’
You seem to be a voice in the wilderness as far as Biden’s effect on the market.
Federal Tax Cuts in the Bush, Obama and Trump Years
You can add tax-free municipal bonds as one of the biggest "loopholes" you'll find.
I'm now convinced that Wall Street actually LOVES many of these changes in tax policy (tax cuts AND tax hikes) -- because these changes give investors big incentives to "churn" their portfolios by selling off some assets and buying others. When capital gains tax rates are low, investors flock to buy shares in companies that have no profits but could grow considerably over time. When capital gains tax rates are high, investors buy shares in different companies with good dividend yields. Etc., etc.
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