Corporate Tax Changes Could Move S&P Earnings by 5%-10%: Goldman

The proposed changes to corporate tax policy at stake in the US presidential election cycle can directly shift S&P 500 earnings by 5%-10%, Goldman Sachs strategists Ben Snider and David Kostin wrote in a note.

• A tax cut scenario in which the federal statutory domestic corporate tax rate declines to 15% from 21% would boost S&P 500 earnings by about 4%, the strategists added
• A tax hike scenario in which the rate rises to 28% would reduce earnings by about 5%, they said
  • Combined with additional proposed changes to the taxation of foreign income and an increase in the alternative ...