Reported about 15 hours ago
As the U.S. presidential election draws near, Vice President Kamala Harris' proposal to elevate the corporate tax rate from 21% to 28% raises concerns for the stock market. While the increase aims to address federal deficits and could generate $1.35 trillion additional revenue over a decade, it poses risks by potentially reducing capital availability for businesses, leading to fewer investments in hiring and innovation. Additionally, a slowdown in share buybacks, which have significantly bolstered earnings per share in recent years, may further exacerbate stock market declines. Analysts also note that the current extremely high Shiller P/E ratio could indicate an inevitable market correction, regardless of the corporate tax changes.
Source: YAHOO