Pessimists say President Biden’s budget proposal could sink the stock market. Realists understand that final budgets won’t include every idea floated.
A proposed billionaire tax and an increase in the corporate tax rate are capturing headlines. These measures would affect stocks. Billionaires would pay taxes on unrealized capital gains and could be forced to sell winning stocks to fund the tax, and higher corporate taxes would reduce earnings.
These factors could slow — but not collapse — the bull market.
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