No
one is going to read
all of this posting
so
Bottom
line on
Wall Street,
The New Tax Bill,
and
Trump said, “It’s the Economy stupid”!
If
you are rich, you get richer under trump.
If
you have a lot of
stocks
and Bonds
so far it is good.
If
you have both
your economy looks good for now.
What
is Wall Street?
A
place for people with a lot of stocks to hunker down and try to get more stocks
and/or make more money!
Wall
Street affects the U.S. economy in a number of ways, the most important of
which are –
Wealth
Effect:
Buoyant stock markets induce
a “wealth effect” in consumers, although some prominent economists assert
that this is more pronounced during a real estate boom than it is during
an equity bull
market. But it does seem logical that consumers may be more inclined to
splurge on big-ticket items when stock markets are hot and their portfolios
have racked up sizeable gains.
Consumer
Confidence:
Bull markets generally exist when economic
conditions are conducive to growth and consumers and businesses are
confident about the outlook for the future. When their confidence is riding
high, consumers tend to spend more, which boosts the U.S. economy since consumer
spending accounts for an estimated 70% of it.
Business
investment:
During bull markets, companies can use their pricey stock to raise
capital, which can then be deployed to acquire assets or competitors. Increased
business investment leads to higher economic output and generates more
employment.
Tax
bill
Well NBC
writes this - Congress approved a sweeping $1.5 trillion tax bill on Wednesday
that slashes rates for corporations, provides new breaks for private businesses
and reorganizes the individual tax code.
The Senate passed the GOP bill early Wednesday morning and
the House then voted on it for a second time to fix technical problems with the
legislation, the final step before it's sent to President Donald Trump for his
signature. No Democrats in either the House or Senate backed the measure.
It is the president's first significant legislative
accomplishment and the biggest tax overhaul in a generation.
CNN
writes it this way - Highlights of the bill
The plan -- which critics say is heavily weighted to ease the
tax burden on businesses rather than the middle class -- drops the corporate
tax rate down from 35% to 21%, repeals the corporate alternative minimum tax,
nearly doubles the standard deduction for individuals and restructures the way
pass-through businesses are taxed.
The bill keeps seven personal income tax brackets and lowers
that tax rates for most brackets, including dropping the top rate to 37% from
39.6%.
The Joint Committee on Taxation found that all income groups
will, on average, see a tax cut in 2019, though the projections worsen over
time. In 2019, all taxpayers would see an 8% tax cut. The JCT, however, found
that by 2027 taxpayers earning up to $75,000 would receive a tax increase --
this would stem from the sunsetting individual rate cuts in the final GOP bill,
along with the repeal of Obamacare's individual mandate.
Trump
said, “It’s the Economy stupid”!
Forbes
QUOTE OF THE DAY
is
It
is easy to be popular. It is not easy to be just.
This Saturday is the one year anniversary of President Donald
Trump’s inauguration. Over the past year, the stock market has boomed, GDP
growth has improved and unemployment is at an almost 17-year low. However, job
gains were lower than any of the past six years and wage growth was less than
last year.
President Trump inherited an
economy that was on a good trajectory with solid job growth and low
unemployment. Trumps own mark on the economy will be based on the
long-term impact of his new tax laws.
The biggest economic questions
going forward are how much growth will tax reform generate, and what will Trump
do with various trade agreements such as NAFTA? These could determine what
happens to the U.S. economy and the stock markets over the next few years.
We
have developed a publicly available Google
which tracks over 100 indicators to
help evaluate the progress and potential of “Make America Great Again.”
