As the Democratic Party
has gained a positive momentum in the US Senate Election, the stocks have come
down in the United States of America on the fear that the chamber controlled by
the Democrats may increase the taxes on corporates.
At present, the US
House of Representatives is controlled by the Democratic Party. If the Republican
controlled US Senate turns in favour of the Democratic Party, Joe Biden, who is
scheduled to take charge as the new President of the United States of America,
can easily push forward any change in the corporate tax framework.
The latest trends indicate
that the Democratic Party will gain a clear victory in the US Senate, which is
at present controlled by the Republican Party.
Clearly, the US
corporate sector is not in favour of the rise of the Democratic Party in the
United States. What the fluctuation in the stocks indicates is the said reality.
It is yet to be seen how
the Democratic Party will utilise the favourable political circumstance emerged
post the US Presidential Election, in which Mr. Biden defeated his rival Donald
Trump, who is the incumbent President of the United States of America.
In the US, the Democratic Party is a very powerful political force.
Photo Courtesy: Google/ images are subject to copyright