U.S. Treasury Estimates Raising Global Corporate Minimum Tax To 21% Would Raise $373.9B Over 10 Years; Biden Tax Proposals For Wealthy Individuals Would Raise $1.834T Over 10 Years; Budget Proposes Adding $104.3B In Mandatory Funding To Internal Revenue Service Over 10 Years, Raising Estimated $341B In Revenue Over Decade
Portfolio Pulse from Benzinga Newsdesk
The U.S. Treasury estimates that raising the global corporate minimum tax to 21% would generate $373.9B over 10 years. Additionally, President Biden's tax proposals for wealthy individuals are projected to raise $1.834T in the same period. The budget also proposes an increase of $104.3B in mandatory funding for the IRS over 10 years, which is expected to raise an additional $341B in revenue.
March 11, 2024 | 6:08 pm
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NEUTRAL IMPACT
The proposed tax changes, including the global corporate minimum tax increase and tax proposals for wealthy individuals, could have a mixed impact on the SPY ETF, reflecting the broader U.S. market's reaction to potential shifts in corporate profitability and consumer spending.
The SPY ETF, which tracks the S&P 500, could see a neutral short-term impact from the proposed tax changes. While higher taxes could pressure corporate earnings, leading to potential negative sentiment, the increased government revenue and potential for reinvestment in the economy could offset some of the negative impacts. The net effect on SPY will depend on the market's perception of these changes' long-term benefits versus short-term costs.
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