The Trump tax cuts are across the line and now we have to see how Wall Street reacts to the concrete news that this much-awaited tax bill is a done deal! And while you’d expect Wall Street to go to a new level on the US Senate’s decision to take an axe to tax, stock markets can surprise you.
The tax plan will:
- Slash the corporate rate from 35% to 20%.
- Create three individual tax brackets with rates of 12%, 25% and 35%.
- Allow the majority of Americans to file taxes on a single sheet of paper.
- Roughly double the standard deduction — a set amount of income exempt from taxation, for all taxpayers.
We know the very sniff of these tax measures being passed has seen Wall Street spike. On Saturday, we saw Russian political concerns over Trump lieutenant, Michael Flynn, take the Dow Jones Index down over 350 points but when the Senate leader, Mitch McConnell, tipped the tax cuts would be passed, the Dow rebounded, to only be down 40 points.