As featured on the website Travilliannext.com on November 12, 2020
While no longer inevitable or even likely, higher corporate tax rates are still possible.
With the election and its potential ramifications still in focus and in flux, we’re going to stick with that topic this week but drill down on one specific aspect that is of strong interest to market observers of banks and bank stocks. Just quickly on the backdrop: Heading into the election, the talk was that in a “Blue Wave” scenario, an increase in corporate tax rates – to 28% from 21% — was a foregone conclusion. Subsequently, however, with the prospect of divided government now more likely, higher corporate tax rates no longer seem inevitable, but are still possible, with the outcome probably dependent on the results in early January of the Georgia run-off elections, which will determine control of the Senate.
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