The new tax plan that has been highly anticipated by the Trump administration is supposedly being shown to the public this coming Wednesday the 27th of September.
The new plan could help to boost stock prices depending on what it says, as we head into the last week of the third quarter.
There have been solid gains associated with the third quarter that have helped to fund expansion amongst many industries.
Looking at the S&P 500, which has been flat during the past week, the stock is up around 3.3% for the quarter as we head into the last week. The Dow, which has had little movement this week, is up around 4.6% for the quarter at 22,349 at the time this article was written.
George Goncalves, the head of fixed income strategy at Nomura stated that “any sort of good news for pushing Trump’s agenda forward, considering nothing is getting done on the economic side, would be a big deal. It might rekindle some of the Trumponomics fervor we had in the beginning of the year.”
The tax plan has not officially been unveiled but experts expect that it could cut corporate taxes to the low 20s percent from where it is currently at 35%. This could also help to allow for the repatriation of foreign profits by multinational companies. Trump’s plan to bring companies back to domestic soil should be present in the tax plan he has created, which will hopefully reflect positively on the market.
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Tax rates for the individual are also expected to be lower as the middle class remains a solid focus for the Trump administration. The tax plan should help to have a positive effect on the market as a whole given that is one of Trump’s priorities and has been since his election as president.