Congress has returned to Washington after a two-week Easter vacation, and What’s Ahead explains why investors should be worried.
The first thing on Congress’ plate is President Biden’s gargantuan infrastructure bill, most of which has little to do with such traditional infrastructure projects as highways and bridges.
Unless changed, the legislation will hurt the economy—and, ultimately, stocks—in two ways.
• The blowout spending will lead to future inflation—and higher interest rates.
• The bill will give the U.S. the highest business tax rate in the developed world, worse, even, than those of France and China. Other tax provisions also slam companies. These will make the U.S. less competitive.
Bulls believe these destructive pieces will be substantially modified. But far-left Democrats will push hard for total victory, just as they successfully did with Biden’s bloated stimulus bill.