Investor alert: Trump’s tax cuts are looking iffy

by Rick Newman | Mar 17, 2017   ()

A lot is riding on the tax cuts President Donald Trump has promised by the end of 2017. Stock markets have soared on the expectation of lower corporate taxes and higher after-tax earnings. Consumer confidence is up too, as ordinary Americans anticipate themiddle-class tax relief Trump crowed about in his recent address to Congress.

But the path to tax cuts on Capitol Hill is narrower and riskier than upbeat investors, who have been gobbling up stocks, seem to believe. Changes in tax law always create new classes of winners and losers—and every group poised to lose under Trump’s tax reform is rapidly mounting opposition. “The odds of tax reform are always less than 50-50, and that’s true this year,” Republican economist Douglas Holtz-Eakin said at a recent conference on tax reform in Washington, DC. “We need these forces to get lined up in the White House, and that hasn’t happened yet.”

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Source: Yahoo Finance
Source: Yahoo Finance

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