Economy

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mnuchin pointingAt all time highs U.S. stock markets have put it all on red on Tax reform with the Trump Adminstration. U.S. Treasury Secretary Mnuchin is out with the spin on the plan and his outlook. Highlights on states, growth and debt follow. The big one, he wants the tax cuts to be retroactive to Jan 1 2017.

Highlights

Tax Rates

  • The non-negotiable aspect of tax plan is 20% corporate tax rate (this was at 15% to start negotiations)
  • Tax Plan will pay for itself
  • Trump's ojective is that tax plan will not see tax cut for the wealthy
  • There is a chance for a fourth individual tax rates

States

  • The federal government should not be in business of subsidizing states

Growth

  • Trump tax plans protections on GDP growth are very reasonable (concur with Q217 3rd estimate)
  • Comfortable that US can get to higher 3% GDP level on a sustainable basis

Debt Ceiling

  • The debt ceiling issue needs to be fixed
  • It is inconceivable not to pay debts
  • Government can be funded through January 2018

From The Traders Community News Desk

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