Source: TD Securities
Modest headwind
due to higher corporate taxes.
Headwind from higher corporate taxes and possible higher capital gains taxes on wealthy.
Positive boost from taxes remaining low, but trade war fears
a drag.
Positive boost from taxes remaining low, but trade war fears
a drag.
Equities
Deficits unlikely to decline, keeping term premium high.
Term premium could remain elevated, but higher revenues may encourage investors.
Term premium likely
to continue rising
as deficits remain substantial.
Higher deficits
could push term premium higher.
Rates
Higher taxes for wealthy, but likely more moderate rise in corporate taxes.
Higher taxes for wealthy, corporate taxes increase to 28%.
Status quo, but highest tax brackets may rise somewhat.
Few changes to current policy. Tariffs on foreign goods likely.
Tax Implications
Tax cuts renewed,
but taxes likely to rise
on the rich.
Tax cuts renewed, but higher tax rates for wealthy to offset higher social spending.
Tax cuts renewed, but not at original levels.
More revenues and lower spending likely.
Higher deficits as
2017 tax cuts
made permanent.
Fiscal Implications
Split Congress
Democrat Congress
Biden White House
Split Congress
Republican Congress
Trump White House