Citigroup Strategists: Harris’ Corporate Tax Plan May Reduce US Stock Value by 6%

COINOTAG news reported on September 16th that Citigroup strategists analyzed the potential outcomes of political platforms proposed by Trump and Harris. Their findings indicate a generally negative impact on the US stock market, with the most significant effect stemming from the Democratic candidate’s proposal to increase corporate taxes. Scott Chronert, a prominent analyst at Citigroup, highlighted that Harris’ tax plan could diminish the fair value of US stocks by approximately 4% to 6%. In contrast, policy impacts under the Republican candidate might range from neutral to a potential 4% decline. Experts predict that Trump’s agenda, specifically the reduction of the federal corporate tax rate from 21% to 15%, would significantly exacerbate the US fiscal deficit. Conversely, Harris’ plan to raise the corporate tax rate to 28% aims to increase revenue, albeit at the expense of stock valuations.