Stocks surged to fresh record highs after Trump vowed that “we’re doing a massive tax plan” so there will be a “much, much simpler tax code that will lower rates for everybody in every bracket”
From Tyler Durden:
Trump did it again: one week after he promised to unveil “phenomenal” tax cuts, moments ago in his meeting with retail CEOs, who are meeting with the president to get him to kill the border adjustment tax idea, he pulled another OPEC, using the precise word the algos were looking for, and this time said that “tax reform is one of the best opportunities to really impact our economy,” Trump said. “So we’re doing a massive tax plan that’s coming along really well.”
He also said that there will be a “much, much simpler tax code” that will lower rates for everybody in every bracket. He added that “other than H & R Block, people are going to love it.”
Of course, people would love to know when it is coming, to which Trump had no explicit answer, instead saying the “tax plan will be submitted in not so distant future”
Trump then said that “there’s a lot of confidence in our economy right now,” citing both the jobs report and the level of the stock market.
Speaking to the retail CEOs, Trump added the retail industry is important to country in supporting millions of jobs, which however did not explain if the BAT will be cut – if so, then the level of corporate tax cuts would be far less, as there would be no partial revenue offset needed to balance the roughly $2 trillion in revenue losses over the next decade from cutting the tax rate from 35% to 20%.
Retailers are among the biggest opponents of border adjustability, arguing that it would result in higher prices for consumers. A number of Republican senators also have concerns about the proposal, putting its future in jeopardy.
The White House has given mixed signals on whether the president supports the border adjustment tax. Trump called it “too complicated” in an interview with The Wall Street Journal, but the White House later said that taxing imports could be one way to pay for a wall on the U.S.-Mexico border. Gary Cohn, head of Trump’s National Economic Council, told CNBC earlier this month that border adjustability is “one of the options that’s on the table.”
Trump during Wednesday’s meeting also spoke about his plans to cut regulations. “We’re cutting regulations in just about every industry,” he told executives from companies including Target; J.C. Penney; Best Buy; Gap; AutoZone; Walgreen Boots; Tractor Supply; Jo-Ann Fabric and Craft Stores. The retail executives are slated to meet with House Ways and Means Committee Chairman Kevin Brady (R-Texas) and Senate Finance Committee Chairman Orrin Hatch (R-Utah) later on Wednesday.
As for stocks, one the headline scanning algos saw “massive” tax plan statement and the following headline…
- TRUMP: WE WILL LOWER TAX RATES FOR PERSONAL, BUSINESS
… they quickly pushed stocks to new all time high – breaking above 20,600!!