Tax reform is at the top of the Trump Administration’s agenda right now, and if we’re given what’s promised, you’ll be a very happy person come tax season.
The stock market has been on fire this year, and at least part of the gains are attributable to the prospect of large-scale federal tax reform that will, presumably, cut taxes for most Americans. Since the direction of the stock market is ultimately driven by earnings, a tax cut would increase stock prices simply by allowing more companies to bolster their profits.
It’s not just those invested in the market who will benefit from lower taxes. The American economy performs better with a lower overall tax burden, translating into lower unemployment and higher earnings for everyday Americans.
At the end of last month, Trump told a crowd in Springfield, Missouri, “this is our once-in-a-generation opportunity to deliver real tax reform for everyday, hard-working Americans. And I am fully committed to working with Congress to get this job done.”
At the time, he did not detail potential policies and rates, beyond saying he wants a 15 percent corporate tax rate, down from the current 35 percent.
Now, the Senate GOP has an agreed upon number: 1.5 trillion in tax cuts over the next ten years. According to the Washington Free Beacon, “Senate Republicans announced Tuesday that they have struck a tentative deal for sweeping tax reform, with tax cuts totaling $1.5 trillion over 10 years.”
The actual bill has yet to be written. But if the final product is revenue-neutral, meaning that it doesn’t add to the deficit, it will be able to pass with a simple majority vote.
While we don’t yet know how the cuts will be structured, Trump said as early as last week that the “wealthy will probably be where they are. If we can do that, we’d like it. If they have to go higher, they’ll go higher. We’re looking at the middle class and jobs.”
What do you think? Do Republicans need to deliver on tax reform? Do you want a tax cut? Tell us your thoughts below, and share this over Facebook and Twitter!
