STI will still do fine despite proposed global tax hikes

WATCH out! Here come huge tax hikes! Pundits around the world are warning that United States President Joe Biden's massive tax hike plans portend global economic headwinds that will impede the rise of stocks everywhere, including the Straits Times Index (STI). They are probably wrong.

First, huge hikes are quite unlikely. But, even if I'm wrong, they won't whack stocks. Here's why.

Yes, Mr Biden's sweeping proposals are unprecedented in size. They involve large, multifaceted personal income, capital gains and corporate tax increases. These have all been widely reported.