One of the Trump administration’s major accomplishments was corporate tax reform. U.S. presidential candidate Joe Biden proposes raising the corporate tax rate by 7 percentage points to 28%. If former Vice President Biden is elected and his corporate tax plan is enacted, the S&P 500’s current earnings estimates could see a roughly negative 10.6% impact. Exhibit 1: S&P 500 Y/Y CapEx vs. Effective Tax Rate Note: Based on current constituents and weights The Tax Cuts and Jobs Act of 2017 (TCJA) cut the U.S. corporate tax rate from 35% to 21%. One of the goals of this tax cut was

Goldman Sachs’ internal technology revolution cannot come soon enough. The $90 billion Wall Street firm’s young online retail-banking unit is growing and could, once big enough, crank out far higher returns than the investment bank. Goldman could do with some of that extra juice already. At 11.4 percent, Goldman’s annualized return on equity for the quarter places it in the upper echelons of the industry, along with the likes of JPMorgan and Wells Fargo. The trouble is, the ROE depended upon a low tax rate, which followed from a new accounting rule relating to the settlement of share awards. Without