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%
Photographer: Alex Wong/Getty Images
This article is for subscribers only.
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.