Goldman Sachs cites the Democratic Party’s ‘razor-thin majorities in the House and the Senate’ to signal challenges for US President Joe Biden’s proposal of a 40% tax on capital gains earned by the wealthier Americans.
The US banker mentions that the proposed tax is unlikely to apply to gains realized before May while also saying, “A 28% rate looks most likely, in our view, as it is roughly halfway between the current rate and Biden’s.”
“An increase effective January 1 2022 is more likely,” adds Goldman.
It’s worth mentioning that Biden’s tax hike proposal drowned markets the previous day while hopes of a lower down version of the risk-negative catalysts join the coronavirus (COVID-19) vaccine optimism to trigger the latest market optimism.
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