President Trump Sharpens His Tax Cut, Deregulation Message

President Trump Sharpens His Tax Cut, Deregulation Message

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But the Republican plan to change Barack Obamacare (Affordable Car Act) was withdrawn for revisions along stricter party lines, expect to see the revised plan soon.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.

 

 

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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