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Investors Take Second Look at Stimulus and Balk at the Bill

  • Proposed infrastructure financing plan seen as cutting profits
  • Tax policy leapfrogs inflation in survey of investor worries
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Biden's Focus on Corporate Taxes Is Pro-Growth, El-Erian Says
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Inflation was a first-quarter problem. Investors are now fretting over the potential tax bill companies could face as part of President Joe Biden’s proposed $2.25 trillion infrastructure plan.

Wall Street suspected that tax hikes were looming even before Treasury Secretary Janet Yellen unveiled a proposed new corporate-tax code on Wednesday to pay for parts of the bill -- a change that likely would dent profits. An RBC Capital Markets survey conducted at the end of March showed 53% of investors say the policy backdrop over the next four years is somewhat negative or very negative, compared with just 21% in December.