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<blockquote data-quote="DriveInDriѵeOut" data-source="post: 4548496" data-attributes="member: 44954"><a href="https://www.marketwatch.com/story/the-cost-of-bidens-economic-plan-to-the-stock-market-is-more-than-you-might-think-2020-07-10?mod=home-page" target="_blank">The cost of Biden’s economic plan to the stock market is more than you might think</a>• Biden would be likely to increase the capital gains tax, perhaps as high as 39% for upper-income individuals. That could lead to selling before such a law were passed.• Due to higher corporate tax rates, S&amp;P 500 <a href="https://www.marketwatch.com/investing/index/SPX?mod=MW_story_quote" target="_blank">SPX,</a> earnings would take about a 7% hit.• Due to more regulation, S&amp;P 500 earnings would take a 2%-3% hit.• Potential restrictions on buybacks and also less free cash flow due to higher corporate taxes would be a negative for the stock market.• With wealthy individuals paying more taxes, they would have less money to buy stocks.All in all, the foregoing calculates to about 20% hit to the stock market.</blockquote>

[QUOTE="DriveInDriѵeOut, post: 4548496, member: 44954"] [URL='https://www.marketwatch.com/story/the-cost-of-bidens-economic-plan-to-the-stock-market-is-more-than-you-might-think-2020-07-10?mod=home-page'][B][SIZE=6]The cost of Biden’s economic plan to the stock market is more than you might think[/SIZE][/B][/URL] • Biden would be likely to increase the capital gains tax, perhaps as high as 39% for upper-income individuals. That could lead to selling before such a law were passed. • Due to higher corporate tax rates, S&P 500 [URL='https://www.marketwatch.com/investing/index/SPX?mod=MW_story_quote']SPX,[/URL] earnings would take about a 7% hit. • Due to more regulation, S&P 500 earnings would take a 2%-3% hit. • Potential restrictions on buybacks and also less free cash flow due to higher corporate taxes would be a negative for the stock market. • With wealthy individuals paying more taxes, they would have less money to buy stocks. [B][SIZE=6]All in all, the foregoing calculates to about 20% hit to the stock market.[/SIZE][/B] [/QUOTE]

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