Higher taxes = Higher markets?
The statistics over the last 70 years appear to suggest that. The years with increases in taxes led to higher stock market returns, overall. The average return, through the end of 2019, was 9%. The years of tax hikes on personal, corporate, and capital gains achieved a higher average return between 11% to 14%.
The working thesis on the corporate side is that an increase in taxes incentivizes companies to invest more in their companies, leading to better growth.