Biden’s Planned Corporate Tax Hike Might Actually Help Citigroup

Buried in Citigroup’s conference call was a tidbit that might reassure investors worried about the impact of higher taxes -- at least on Citigroup.

• Asked for the implications of a corporate tax increase to 28% from 21% -- which Joe Biden has proposed -- Citigroup’s CFO Mark Mason said that the shift would bolster its deferred tax allowance (DTA) by $4b, and would return DTA usage levels to roughly $1b per year
  • NOTE: See transcript for remarks
• “In some ways a higher tax rate would benefit Citi, especially given the potential for the upward revaluation of the DTA,” Jefferies analyst ...