McDonald’s is confronting its first lawsuit stemming from the E. coli outbreak linked to its Quarter Pounder burgers.
Additionally, on Sunday, President Biden announced that he would withdraw from the race for the Democratic presidential nomination, amid escalating calls for his resignation following a lackluster debate performance against former President Donald Trump, the Republican candidate.
Following his announcement, Biden endorsed Vice President Kamala Harris, who expressed her intention to continue her candidacy and received notable endorsements from several prominent figures, including California Governor Gavin Newsom, Pennsylvania Governor Josh Shapiro, and New Jersey Governor Phil Murphy. However, analysts from Goldman Sachs believe that there will not be significant changes in policy if Harris becomes the nominee.
Goldman’s chief economist, Jan Hatzius, stated that the fiscal and trade policy agenda for the Democrats is unlikely to diverge dramatically with Harris at the helm. They also indicated that the odds of a Democratic victory in the upcoming election have slightly increased, now estimated at just under 40%.
Moreover, Goldman’s analysts previously noted that tax policy will become a critical focus next year, particularly with the expiration of personal income tax provisions from the Tax Cuts and Jobs Act expected at the end of 2025. This means the next president will have to make decisions regarding the extension of these tax cuts and potential new tax implementations.
Key projections for fiscal policy under a potential Biden victory include:
– A 39.6% tax rate on individuals earning $400,000 or more, up from the current 35%/37%.
– A proposed increase in the corporate tax rate to 28%, up from the current 21%, though Goldman expressed skepticism about Congress agreeing to this figure, suggesting a 25% rate is more likely. In contrast, Trump has committed to reducing the rate to 20%.
– A proposed increase in the Social Security and Medicare tax rate on incomes exceeding $400,000 from 3.8% to 5%.
In the event Harris secures the nomination, prediction markets suggest a strong possibility that the vice-presidential position could go to either Governors Shapiro of Pennsylvania, Roy Cooper of North Carolina, Andy Beshear of Kentucky, or Arizona Senator Mark Kelly.