Tags: wall street | tax reform | donald trump | fears

Trump Tax Cuts Worry Wall Street Analysts

Image: Trump Tax Cuts Worry Wall Street Analysts
(AP)

By    |   Tuesday, 10 Oct 2017 09:57 AM

Wall Street analysts are warning that President Donald Trump's tax plan could increase the U.S. deficit and fuel a stock-market bubble, even as traders and supply-siders are cheering proposed cuts to corporate and individual taxes.

"The U.S. economy does not need any fiscal stimulus here. It could be too much of a good thing," Ed Yardeni, president of investment advisory Yardeni Research said in a CNN report Monday.

The Tax Policy Center warns that the Trump plan would reduce federal tax revenue by $2.4 trillion over 10 years, but would also would lower tax rates for "all income groups."

Robert S. Kaplan, president of the Federal Reserve Bank of Dallas, told CNBC he is concerned that tax cuts could lead to a "short-term bump" that could result in a "more leveraged" economy.

The White House, meanwhile, is pressing ahead with its plans that include lowering the corporate tax rate of 35 percent, the highest in the industrialized world, to 20 percent. It also proposes across-the-board cuts for individual taxpayers.

"This will pay for itself with growth and with the reduction of different deductions and closing loopholes," Treasury Secretary Steve Mnuchin said when he outlined the plan in April.

Grover Norquist, president of Americans for Tax Reform, is bullish on the tax plan.

"The winners of this are the millions of Americans who will get a job because we're bringing trillions of dollars overseas back to the United States," he said.

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Wall Street analysts are warning that President Donald Trump's tax plan could increase the U.S. deficit and fuel a stock-market bubble, even as traders and supply-siders are cheering proposed cuts to corporate and individual taxes.
wall street, tax reform, donald trump, fears
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2017-57-10
Tuesday, 10 Oct 2017 09:57 AM
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