President Trump Sharpens His Tax Cut, Deregulation Message
$DIA, $SPY, $QQQ, $VXX
The Trump Administration is sharpening its focus and message on a tax plan that will win quick approval in Congress and help to boost the US economy.
President Trump’s 1st 11 weeks in office have included executive orders to remove some of Barack Hussein Obama’s restrictions on the energy industry and government contractors, while pushing for cost savings in the executive branch.
But the Republican plan to change Barack Obamacare (Affordable Car Act) was withdrawn for revisions along stricter party lines, expect to see the revised plan soon.
Daily, President Trump is honing his message on tax cuts that will pay for themselves as the US economy grows.
On the budget
In going through budget reconciliation talks, Congress does not have to accept the Congressional Budget Office’s forecast that shows a tax cut will trigger deeper deficits and meager economic expansion. The US economy has grown by 3.2% a year on average since Y 1947, but it did not exceed 3% during The Obama Admin.
“CBO says 1.8% growth for the next 10 years. In other words: lower tax rates have no impact. Nonsense,” Larry Kudlow said. “If I take that up to 3%, which is below our historic average, you know how much money I make? $4.5-T. That is the Mother of all pay-fors.”
Created by the Congressional Budget Act of 1974, reconciliation allows for speedier consideration of certain tax, spending and debt-limit legislation, according to the Center on Budget and Policy Priorities. Reconciliation bills are not subject to filibuster in the Senate, and the scope of amendments is limited.
Mr. Kudlow’s forecast uses a “dynamic” model that predicts tax cuts will help the economy grow as the private sector finds better uses for its money than the government can.
The message, let’s get this done.
Tuesday, the US major stock market indexes finished flat to little changed at: DJIA -6.72 at 20651.30, NAS Comp -14.15 at 5866.77, S&P 500 -3.38 at 2353.78
Volume: Trade on the NYSE came in at 933.3-M/shares exchanged.
- NAS Comp +9.0% YTD
- S&P 500 +5.1% YTD
- DJIA +4.5% YTD
- Russell 2000 +1.5% YTD
|HeffX-LTN Analysis for DIA:||Overall||Short||Intermediate||Long|
|Neutral (0.04)||Bearish (-0.30)||Neutral (0.02)||Bullish (0.42)|
|HeffX-LTN Analysis for SPY:||Overall||Short||Intermediate||Long|
|Neutral (-0.04)||Bearish (-0.32)||Neutral (-0.21)||Bullish (0.42)|
|HeffX-LTN Analysis for QQQ:||Overall||Short||Intermediate||Long|
|Bullish (0.38)||Bullish (0.30)||Bullish (0.25)||Very Bullish (0.58)|
|HeffX-LTN Analysis for VXX:||Overall||Short||Intermediate||Long|
|Neutral (-0.06)||Neutral (0.08)||Neutral (-0.15)||Neutral (-0.12)|
The US Financial markets are closed for Good Friday, have a terrific Easter Weekend.