Bloomberg News is reporting that a consensus is forming among Wall Street Titans that tax increases are coming after the election. Most of the increases will be at the upper end of the income/wealth spectrum. The only question appears to be how much taxes will go up. Among other things, the article states the following:
Just this week, Ray Dalio, the man behind the largest hedge fund, told JPMorgan Chase & Co.’s private-banking clients to expect higher tax rates no matter who wins November’s race for the White House. The mounting fiscal pain across the nation is making the math undeniable to leaders like Fink, who runs the world’s biggest asset manager as chief of BlackRock Inc., and Blankfein, who led Goldman Sachs Group Inc. through the last financial crisis.
“Taxes have to go up — and it will go up at the upper end,” Leon Cooperman, the outspoken hedge fund veteran, said in an interview. “We have to deal with our fiscal situation and stop indebting our children.” He has said he would be willing to pay half of his income to the government.
No one expects Trump to immediately reverse the tax cuts he signed into law when the economy was booming, particularly with his re-election at stake. In fact, even as millions of jobs vanish, the president has talked about cutting payroll taxes and reducing the capital gains rate, another move that would disproportionately benefit the affluent.
But inside executive suites, the debate has already shifted from whether to raise tax rates to a question of how much they’ll go up when the economy starts to recover.
Almost $3 trillion of emergency federal rescue funding has yet to stop the pain from a deadly outbreak that ground entire industries to a halt and forced more than 33 million Americans to seek unemployment benefits. The fallout has left state and local governments’ finances in tatters and is multiplying a federal deficit that was already at $1 trillion a year before the virus even arrived.
To see full article (subscription may be required) click here: Wall Street Titans See Tax Hikes Whether They Like Them or Not – Bloomberg
Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.