The Era of Started Tax Increases... "If You Can't Avoid It, Let's Find Biden Tax Increase Beneficiary Stocks"

[Asia Economy Reporter Lee Seon-ae] In an era of inevitable global tax increases, it is necessary to pay attention to the industries that will benefit.

According to foreign media on the 24th, President Joe Biden's tax increase measures are being announced one after another. Following the corporate tax rate hike, top income tax increase, and discussions on a global minimum corporate tax, news of a capital gains tax increase has also been reported. Additionally, Europe is beginning to seriously discuss digital taxes. The capital gains tax plan proposes raising the tax rate from the current 20% to 39.6% for individuals with annual income exceeding $1 million, and including VAT, up to a maximum of 43.4%. This would bring the tax rate on investment income close to the top income tax rate (37%).

Lee Eun-taek, a researcher at KB Securities, said, "It may be hard to believe, but thanks to neoliberalism, we have been subject to the lowest tax rates in the past 100 years (however, with the introduction of value-added tax, social security tax, and expanded withholding tax, the actual tax burden has not decreased)." He added, "As neoliberalism comes to an end and the era of tax increases begins, we must choose to enjoy it. If the government collects more taxes, there will definitely be somewhere that receives more money."

The industry he identified as benefiting from tax increases is the eco-friendly sector. This is based on predictions that the U.S. will invest in eco-friendly mobility (infrastructure stimulus measures) through corporate and income tax hikes. Last month, President Biden announced plans to invest half of the $2.2 trillion infrastructure investment in eco-friendly energy projects. Through the capital gains tax increase, funds are expected to be used for vacation support, education, and childcare (under the U.S. Family Planning Act), making service consumption-related industries potential beneficiaries.

Meanwhile, the Climate Summit, attended by leaders from 40 countries worldwide, is also expected to be a positive factor for eco-friendly industries. South Korea, the U.S., Japan, and others have raised their greenhouse gas emission reduction targets. The U.S. increased its target for reducing greenhouse gas emissions by 2025 compared to 2005 from 26-28% to 50-52% by 2030. South Korea also plans to submit an upward revision of its 2030 greenhouse gas emission reduction target from 24.4% compared to 2017 to the United Nations in the second half of the year.

Kim Young-hwan, a researcher at NH Investment & Securities, said, "The Climate Summit is the first step in this year's international climate change diplomatic efforts," adding, "The upward revision of greenhouse gas emission reduction targets by major global countries is expected to act as a positive policy momentum for eco-friendly sectors such as electric vehicles, secondary batteries, and renewable energy."

This content was produced with the assistance of AI translation services.