Higher taxes need not be bad for markets

BUOYED by low interest rates and economic recovery, equities in the United States want to climb higher. Investors, though, are getting nervous about rising inflation and potential spikes in interest rates needed to tame inflationary pressures.

Should investors also be concerned with President Joe Biden's planned tax hikes? Is the assumption that the tax hikes will be substantially reduced correct?

Mr Biden, at 78 years old, became the oldest person to assume the US presidency when he took office early this year. But he appears to be a man in a hurry with plans to offer America a kind of "New Deal", in the spirit of Franklin D Roosevelt.