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  1. #1
    Electrical/Wiring/Trolling Motors Moderator CatFan's Avatar
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    Tax reform and the market

    So two things are being bandied about: Cutting the corporate tax rate, which I think should be zero. This will certainly cause a jump in the market since earnings will rise significantly. The second thing is changes to or even elimination of the 401(K) deduction. This is a little harder to grasp. Clearly the 401(K) deduction will cut down on the amount of money going into the market, but will the anticipated reduction in saving have an immediate effect on the market or will it be a long-term drag?

    What do you think? I'm sails unfurled and about fully exposed. Nerve racking at my age, but I can't imagine any Trump tax plan to be bad news for the market.
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  2. Stocks/Investments Moderator boneil's Avatar
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    #2
    I would think that his tax plan is already priced in, but I'm not so sure. There's so much more this economy could do, we just need congress to get things done and I'm not sure they can. But if there's repatriation of overseas money, that would put a "put" on the market. Alot of that money would go to stock buybacks.

    As long as there is hope of tax reform, stimulus, rate hikes, growth, this market may just keep going higher, even if it takes a couple years to get done. I think there's to much complacency in this market. Especially with North Korea.
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  3. Member
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    #3
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    Last edited by tj; 08-22-2017 at 01:54 PM.