US President Joe Biden, in Louisiana, was reprising his critique of excessive CEO pay and stock buybacks, and government deficits, while also warning about Chinese R&D spending outpacing the U.S.
“The Chinese are eating our lunch, they’re eating our lunch economically” on R&D, he said.
Meanwhile, he has said that he would also like to see corporate tax rate between 25% and 28%.
There has been no market reaction to this as his preferences are already well known.
Biden already proposed raising the top rate on long-term capital gains to 39.6% from 20%. However, the tax hike would apply to households making more than USD1 million.
In theory, higher taxes on investments like stocks should make them less appealing but investors have largely shrugged off President Biden’s proposal to raise taxes on investment income for wealthy Americans.
Instead, today, The Dow Jones Industrial Average has topped a fresh record high, bolstered by an upbeat weekly jobless claims report.
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