Next round of US fiscal legislation could reach $4 trillion – Goldman Sachs
Analysts at Goldman Sachs eye another US fiscal stimulus, ranging to as high as $4.00 trillion, in their latest note published recently.
The US bank suggests a minimum of $2.00 trillion of the infrastructure spending package, which could go to $4.00 trillion if including health care, education, and child care initiatives, in the next round of relief from US President Joe Biden.
It should be noted that the bank anticipates higher taxes as a resource for paying the fiscal relief bill.
“The tax plan proposed by President Biden in his election campaign would raise the statutory corporate tax rate on domestic income from 21% to 28%, partially reversing the cut from a rate of 35% passed in the 2017 Tax Cuts and Jobs Act. The plan would also raise the tax rate on foreign income (also called the "GILTI" tax) and institute a minimum corporate tax rate,” said the note further.
It’s worth mentioning that the US government passed a $1.9 trillion covid stimulus the last week but couldn’t impress markets amid the alleged “sell the fact” trade.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
