Skip to content
Subscriber Only

Goldman’s Kostin Warns Biden Tax Plan Will Slash Earnings

  • Proposed hikes would raise corporate taxes, set minimum rate
  • Full adoption of package would cut EPS growth in 2022 to 5%
President Biden Delivers Remarks On Gun Violence Prevention From White House Rose Garden

Photographer: Alex Wong/Getty Images

Updated on

Joe Biden’s tax hike proposals will deal a blow to corporate earnings growth next year, Goldman Sachs Group Inc. strategists warned, highlighting a headwind for U.S. equities following a rally that has pushed prices to record highs.

The U.S. president wants to raise corporate income tax to 28% and set a 21% minimum levy on global corporate earnings. The ambitious package is set to face resistance in Congress, before a potentially revised version goes into effect next year.