Experts are telling us that Joe Biden’s plan to raise the corporate tax rate will undo most of President Trump’s economy boosting efforts as it will send some American companies offshore, keep others overseas, hobble domestic companies and drive up the unemployment rate, thus damaging the strong economy that President Trump’s policies built in his 1st term.
Joe Biden campaigned on raising the corporate tax rate from 21% to 28% in order to help fund his plans for Green energy, infrastructure projects, and other ambitious, progressive initiatives.
According to the Tax Policy Center, Mr. Biden’s overall tax plan will raise about $2.1-T over 10 yrs, totaling 0.8% of the GDP (gross domestic product).
The Democrats’ narrow control over the House and Senate boosts the odds of Mr. Biden’s tax hikes going into effect.
Tuesday, the benchmark US stock market indexes finished at: DJIA +60.00 at 31068.63, NAS Comp +36.00 at 13072.44, S&P 500 1.58 at 3801.19.
The Russell 2000 (+1.7%) extended its January Effect rally and closed at a another record high.
Volume: Trade on the NYSE came in at 1.1-B/shares exchanged.
HeffX-LTN’s overall technical outlook for the major stock market indexes in Bullish to Very Bullish in here.
- Russell 2000 +7.8% YTD
- DJIA +1.5% YTD
- NAS Comp +1.4% YTD
- S&P 500 +1.2% YTD
Looking Ahead: Investors will receive the Consumer Price Index (CPI) for December, the Treasury Budget for December, the Fed’s Beige Book for January, and the weekly MBA Mortgage Applications Index Wednesday.
Have a healthy day, Keep the Faith!
Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he is the author of “The Red Roadmaster’s Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.