Current Event Update: wednesday, may 6th

By Yihan (Bradley) Tian

Despite recent initiations of the reopening plan, Larry Finx, CEO of Blackrock Investments, warns the public of another incoming wave of bankruptcy and economic hardship.

Although the economy and commercial units are already struggling, the Fed will have to raise corporate taxes to sustain costs for rescuing endangered sectors and other acts of emergency.

The pandemic has led to reduced consumer activities and general anxiety towards air travel that will likely remain for a long time, Finx mentioned earlier this week.

Fink also suggested the potential advent of a rise in corporate tax rate from 21% - the result of the 2017 tax overhaul - to as much as 29%. He also mentioned that individual income taxes could rise as well. 

This major shift in the distribution of federal funds may pave way for an accelerated demise of state & municipal financing. In addition, the heightened tax rate will likely extinguish the hopes of many smaller businesses to reopen effectively. 

Source: CNBC, Bloomberg, Investing.com