Blue wave in November portends badly for retailers: Wells Fargo analysis

A Democratic sweep could spell trouble for retailers, according to Wells Fargo.

A new report from the bank identifies two campaign promises by Joe Biden that would be especially troubling to retailers: his vow to increase the corporate income tax from 21% to 28% and raise the federal minimum wage to $15, up from its current $7.25 an hour.

If these two initiatives were to become law, retailers, on average, could see a “headwind” in earnings per share between 9% and 11%.

Biden’s vow to increase taxes would be the worst of them.

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