Funding infrastructure with corporate tax hikes isn’t stimulus – it’s just a hit to earnings.
What you're not hearing about the death of Biden's corporate tax hikes
Monday, June 21, 2021
There's a reason why both mavericks like Manchin and loyalists like Nadler are opposing the 28% tax.
Update to Strategic View
Market-implied probabilities for no change to the corporate tax rate have risen above 70%. Opposition has come from within the Democratic party both from maverick Manchin and loyalist Nadler. Having gained the presidency and the Congress by just 89,000 votes -- four basis points of the electorate -- the Democrats have no mandate for large-scale change, without risking disaster in the mid-terms that are stacked against them to begin with. Their game is to talk big and do little. We reiterate our original call that tax hikes will not happen, nor will other Biden initiatives such as infrastructure.