According to the Treasury Department, the “Made in America” tax plan, which will bring in $ 2.5 trillion over 15 years, will impose higher taxes on the profits of companies overseas, with investors and financing a large number of officials accused of enforcing the law with a new minimum tax on profits reported by companies.
Biden is also seeking to raise the corporate tax rate from 28% to 28% in President Donald Trump’s 2017 tax cut. However, Biden said he was open to compromise.
According to the estimates of UPS Equity Strategists, here are the key sectors of the S&P 500 stock index and specific industries that are expected to be most affected by the program.
According to UPS strategists, if the rate drops to 28%, the tax plan will weigh 7.4% on the S&P 500’s overall profit. Strategists point out that it may be difficult to accept the full plan in a split Congress, so they estimate that profits will suffer by 3.6%, considering the 25% lower rate and other changes.
At 28%, UPS calculates the following impact
The most affected sectors
* Technology: 8.8%
* Communication Services: 8.6%
* Custom consumption: 8.2%
* Center: 7.7
* Financial Services: 7.4%
The most affected sectors
* Durable consumer goods and clothing: 10.4
* Media and Entertainment: 10.1%
* Technology, Materials and Equipment: 9.8%
* Semiconductors and Equipment: 9.8%
* Consumer Services: 8.8%
“Coffee practitioner. Lifelong web evangelist. Unapologetic internet enthusiast.”