While markets have not reacted negatively to hints from Janet Yellen about hiking taxes, Gareth Soloway, chief market strategist of InTheMoneyStocks.com, said that investors are still waiting to see how much taxes will be raised.
“I think the markets are waiting for clarity on it. The question is, is the corporate tax rate going to go to 25%, or 28%,” Soloway said. “I’m also curious to hear what the long-term capital gains tax could be raised to. I think if we get a raise in the long-term cap gains let’s say starting in 2022, you could see major selling and profit taking into this year as well.”
