Kamala Harris' Corporate Tax Proposal: Implications for S&P 500

Analysts at Goldman Sachs suggest that Kamala Harris' proposed corporate tax hike to 28% could reduce S&P 500 earnings by 5%. Additional taxation measures could see an 8% drop. Conversely, Trump's tax relief plan could boost earnings by 4%. Harris' presence has rejuvenated the Democratic campaign.

Kamala Harris' proposed corporate tax hike to 28% ahead of the November Presidential elections could decrease earnings for companies on the S&P 500 by about 5%, according to analysts at Goldman Sachs.

The proposed measures, including increased taxation of foreign income and a higher alternative minimum tax rate, could lead to an 8% reduction in earnings. Meanwhile, President Trump's relief plan could increase S&P 500 earnings by about 4%.

Goldman Sachs analysts highlighted that each 1% change in the tax rate would shift S&P 500 earnings per share by less than 1%. Harris' rise has revitalized the Democratic campaign, with her edging ahead of Trump in some polls.

(With inputs from agencies.)