Wall Street is worried about a hit to corporate earnings if Vice President Kamala Harris wins the presidency in November as the Democratic nominee has vowed to hike taxes, according to a report.
If re-elected, Trump wants to cut the tax rate to 15% for companies whose products are made in the USA, he has said. The Democratic nominee proposed raising the capital gains tax rate – which is a tax on profit that was made by selling something that appreciates over time, like stocks or gold. Morgan Stanley said the correlation between capital gains taxes and the stock market is insignificant, but the tax debate could spark market volatility in the meantime.
Some of Trump’s 2018 tax cuts will expire next year, but he plans to extend them if he is re-elected.