If a Democratic candidate prevails in 2020, there could be sweeping changes to corporate taxes, according to UBS. A 28% corporate tax rate, like the one proposed by former Vice President Joe Biden, would lower S&P 500 earnings by 3% to 4%, UBS estimates.
Senator Elizabeth Warren's plans would lower earnings by about 7%, the bank said.
But, if Trump wins a second term, corporate tax rates would likely remain the same. Lower corporate taxes from the Tax Cuts and Jobs Act in 2017 boosted S&P 500 earnings by nearly 10%, UBS said.