Ron Insana: This is why higher taxes won’t incite a bear market

SourceCNBC
SectorEconomy
CountryGulf

In the immortal words of Joan Rivers, "Can we talk?"There is so much gibberish being bandied about when it comes to the Biden infrastructure and tax plan that it's simply time to cut through all the rhetorical nonsense and have a straightforward conversation.The main argument on Wall Street, and among some supply-side economists, against raising taxes is that it will kill the bull market in stocks, create a negative wealth effect and reduce capital investment at a time when it may be needed most.The problem here is the absolute lack of empirical evidence that any of those claims stand up under rigorous scrutiny.In my study of market history, not a singular secular bear market was initiated by raising taxes on either corporations or individuals. Others have confirmed this view.Big bear markets have two triggers, as told to me by one of the world's greatest investors, Stan Druckenmiller:The tightening of monetary policy by the Federal ReserveThe onset of warWe are currently...read more...