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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.