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.
