Tags: trump | S&P | tax cuts | markets

S&P: Trump Tax Cuts Could Produce 'Eye-Popping' Market Gains

S&P: Trump Tax Cuts Could Produce 'Eye-Popping' Market Gains

(Dollar Photo Club)

By    |   Friday, 02 December 2016 06:27 AM

S&P predicts that Donald Trump’s tax cuts will give a big boost to the stock market.

S&P Global Market Intelligence estimates that, “in a perfect world, the impact of slashing the highest-in-the-world U.S. corporate tax rate could be a nearly immediate 11 percent boost to the market,” CNBC.com reported.

 

Trump and his prospective Cabinet nominees have said the new administration will look to knock the corporate levy down from its current 35 percent to 15 percent. The effective tax rate, or the one that companies in the S&P 500 actually pay after deductions, is 29 percent, according to S&P.

"The implications for stock market pricing are potentially dramatic," S&P strategists said in a note and could yield "some eye-popping results."

To be sure, the S&P 500 index already has gained 4.7 percent since Election Day.

"We only mean to illustrate the potential significance that the discussion surrounding corporate tax reform could have on investor psychology and the level of 'animal spirits' within the broad economy and financial markets generally," the S&P note said. "We now await indications of how quickly the details of any forthcoming tax reform proposal can come together and how quickly and efficiently Congress can convert the proposals into legislation."

Many other respected economic gurus are also touting Trump's tax plan.

Veteran financial guru Larry Kudlow, who served as the Donald Trump campaign's senior economic adviser, tells Newsmax TV that the president-elect's tax-overhaul blueprint will benefit every economic class in America.

“When you have across-the-board tax cuts, across-the-board reductions in marginal tax rate, everyone's a winner,” Kudlow told Steve Malzberg on "America Talks Live."

“There are no losers in this. None. Zero,” said  Kudlow, a Newsmax Finance Insider and CNBC senior contributor.

See Steve Malzberg on Newsmax TV: Tune in beginning at 12 PM EDT to see "America Talks Live" — on FiOS 115/116, YouTube Livestream, Newsmax TV App from any smartphone, NewsmaxTV.com, Roku, Amazon Fire — More Systems Here

To be sure, Trump’s published tax plan on his website vows he would “reduce taxes across-the-board.”

“We're going to broaden the base while we lower the rates and actually, if anybody looks at Trump's plan, the middle-income people in a growth sense, do very well, almost as well as the upper bracket people," Kudlow said.

Meanwhile, Grover Norquist lauded Trump's "powerful" tax plan, comparing it to that of Ronald Reagan's.

The President of Americans for Tax Reform said on C-SPAN's "Washington Journal" that Trump's plan to lower the corporate rate to 20 percent — from 40 percent — will be a main driver of growth.

 

That "makes us competitive with the rest of the world in a way we weren't before," Norquist said on C-SPAN. "That will be a phenomenal help in terms of trade and job creation."

Overall, Norquist praised Trump's tax plan as "extremely powerful in terms of economic growth."

© 2019 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
StreetTalk
S&P predicts that Donald Trump’s tax cuts will give a big boost to the stock market.
trump, S&P, tax cuts, markets
472
2016-27-02
Friday, 02 December 2016 06:27 AM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved