Kamala Harris' Corporate Tax Plan and Its Impact on S&P 500 Earnings
Democratic presidential candidate Kamala Harris' proposal to raise the corporate tax rate from 21% to 28% may reduce S&P 500 company earnings by 5%, according to Goldman Sachs analysts. The plan aims to ensure big corporations contribute their fair share. Comparatively, Trump's plan to reduce the tax rate to 15% could boost earnings.

Democratic presidential candidate Kamala Harris' proposed corporate tax hike could reduce S&P 500 company earnings by about 5%, according to Goldman Sachs analysts. Last month, Vice President Harris outlined plans to raise the corporate tax rate to 28% from 21% to ensure "big corporations pay their fair share."
Goldman Sachs analysts noted that at a 28% tax rate, S&P 500 companies could see a 5% earnings drop. However, they mentioned earlier that the broader economy would benefit more under a Democratic administration in the next two years.
The U.S. statutory corporate tax rate on domestic income is currently 26%, but the effective tax rate paid by typical S&P 500 companies stands at 19%. While each presidential candidate has proposed changes to the corporate tax code, Goldman Sachs analysts, led by Ben Snider, emphasized that these changes are not guaranteed.
(With inputs from agencies.)
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