Simply put, Trump’s plan to lower the tax rate paid by American’s wealthiest citizens likely would not be revenue-neutral for the federal government, and in fact would likely increase the deficit unless economic growth took off to an unprecedented degree and/or Trump changes his plans to increase military spending significantly.
To be sure, any tax plan proposed by any potential president rarely is adopted and enacted as-is by Congress. And given the rabid partisanship in Washington, Trump’s plan—even if Republicans were to continue their majorities in the House and Senate—probably would not emerge unscathed. That said, the Trump tax agenda is generally one that most Republicans would support in principle, and if largely adopted, would be a boost for dividend-paying stocks and for the owners of those stocks.
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