Bloomberg Intelligence's Equity Market Minute 10/16/2023

Gina Martin Adams discusses the impact of monetary and tax policies on equities, highlighting that tax policy has a more significant effect on earnings than interest rates. The average effective tax rate for the S&P 500 has reached its highest level since the mid-2010s, with cash taxes paid increasing by over 70% since 2019. Tax expenses now account for a larger share of earnings before interest and taxes (EBID) compared to interest expenses, which have remained relatively flat despite rising interest rates. The video concludes with a summary of these financial trends.

What has been the trend in cash taxes paid relative to 2019?

In what way are taxes impacting earnings trends compared to interest rates at this time?