The New CS Board

[jumanji0881]

A Broad Bipartisan Infrastructure Deal Is Unlikely: Goldman : https://www.zerohedge.com/markets/broad-bipartisan-infrastructure-deal-unlikely-goldman


Excerpt:
Reading recent headlines, one would be left with the impression of a wide range of spending outcomes – a boost of a few hundred billion to as much as $6 trillion over ten years – but the range of outcomes is not as wide as these figures imply. Most of the “traditional” infrastructure President Biden has proposed looks likely to pass, along with substantial R&D spending and renewal of personal tax credits that expire at year end. Together, these cost around 1% of GDP on an annual basis over the next few years. The remainder of the Biden agenda might boost spending by another1% of GDP, but Congress is expected to pare these proposals considerably.

Meanwhile, tax increases also still look likely, assuming that Democrats pass legislation using the reconciliation process. That's why Goldman has not changed its views much in this area, and still expects the corporate tax rate to settle around 25% along with more incremental versions of the international tax changes Biden has proposed. A capital gains rate increase is a close call, but a 28%capital gains rate is slightly more likely than the status quo.