Trump is focused on jobs:
Stocks and the economy have a long way to go after the Tax Cut Bill is totally understood and appreciated in scope and size. Immediate expensing will have a big impact. Biggest Tax Cuts and Reform EVER passed. Enjoy, and create many beautiful JOBS!
— Donald J. Trump (@realDonaldTrump) December 19, 2017
Backgrounder on Immediate Expensing here at Slate. iirc Capex for SP500 is running around $350B/year...
5 comments:
Depreciation makes perfect sense in an abstract academic/regulatory world in reality it creates perverse incentives for business.
Deficit is probably going to go down a bit as the corporate sector is losing the ability to save/hoard USD balances in offshore entities to avoid taxes....
Trumpcare proposed a $4k USD tax credit to help pay for healthcare.... got shot down...
The tax cut is multi-purpose. Not only does it reward those who already have waaaay to much, it provides a reason (budget deficits) to eliminate those wasteful social programs (like social security and Medicare) because "we can't afford them".
Just wait and see ...
Only if the tax cuts foment an increase in the propensity for non govt to save USDs....
The corporate tax increse on offshore earnings will remove a current financial incentive to save by that sector.... we’ll have to see wrt the other sectors in non govt...
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