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Last month, Vice President Harris outlined plans to raise the
corporate tax rate to 28% from 21%, in order to ensure "big
corporations pay their fair share."
Goldman analysts said in a note late on Wednesday that at a 28%
taxation rate, they estimate earnings of S&P 500 companies would
take a 5% hit.
However, the brokerage has said earlier that the broader economy
would get the biggest boost in the next two years if Democrats
win the White House and Congress.
Economic output would take a hit next year under a Republican
administration, mostly from increased import tariffs and tighter
immigration policies, it has previously said.
On Wednesday, Harris said Trump's plans would cut off federal
programs that offer loans to small businesses, cut the corporate
tax rate and push the U.S. deficit higher.
"The current U.S. statutory corporate tax rate on domestic
income is 26%, but the total effective tax rate paid by the
typical S&P 500 company is 19%," the brokerage said.
"While each presidential candidate has proposed changes to the
corporate tax code, changes are not a given," analysts led by
Ben Snider wrote in a note.
Polls showed that Trump had built a lead over Biden but Harris
has since edged ahead of the Republican candidate in some
national opinion polls.
Adding taxation on foreign income and an increase in the
alternative minimum tax rate to 21% from 15% could reduce
earnings by as much as 8% if Harris won, they said.
Trump's proposed relief on the federal domestic corporate tax
rate to 15% from the current 21% would "arithmetically" boost
S&P 500 earnings by about 4%, they added.
For every projected 1 percentage point change in the U.S.
statutory domestic tax rate, S&P 500 earnings per share would
shift by about $2, according to the brokerage.
(Reporting by Roshan Abraham in Bengaluru; Editing by Nivedita
Bhattacharjee)
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