The stock market has roared higher since the Trump tax cut plans were teased on Thursday, Feb. 9. Since then, the S&P 500 and Dow Jones Industrial Average have surged 1.5% and 1.8%, respectively. They’ve both closed at new all-time highs three sessions in a row.
But Trump’s tax proposal doesn’t warrant these stock market highs right now. That’s because his plans might not be implemented until late 2017 – at the earliest.
You see, President Donald Trump plans to make drastic changes to U. S. tax policy. In a nutshell, his tax cut plans primarily include…
Reducing the corporate tax rate significantly from its current 35% level to 15% Creating incentives for American businesses to keep operations in the United States Producing revenue of more than $1 trillion over the next decade to neutralize the deficit incurred from enforcing the legislation The biggest reason Trump’s tax plans are pushing markets through the roof is his proposed lowering of corporate taxes. When companies pay the government less money, they can hold onto more of their profits. This can obviously result in higher earnings and higher stock prices.
This post was published at Wall Street Examiner on February 14, 2017.
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