There may be more at play here than just waning hope that Trump’s tax cuts are going to be passed…
Trump’s proposed tax plan is enticing. The standard deduction would be doubled, which will help most families. Investment taxes would be reduced. This could all mean a serious boost to the economy. It might have been a long shot, but now, with the media throwing around “impeachment” as its latest buzzword, those hopes appear to be shattered.
The market reacted today like a balloon whose air had been let out. The New York Times reports on this loss of hope:
WASHINGTON — Only two months ago, Republicans in Congress and President Trump’s top economic advisers were confidently predicting that a sweeping rewrite of the tax code would be in hand by summer’s end.
But with the White House consumed with constant upheaval, Congress facing the prospect of myriad investigations on top of its delayed duty to fund the government, and health care legislation still grinding through the Senate, those hopes have faded. Even with the less ambitious plan of just tax cuts — not a tax overhaul — the new mantra in Washington is “Maybe next year.”
“I think people are beginning to settle in and come to the realization that this is going to be a long ride,” said Ken Spain, a former National Republican Congressional Committee spokesman who lobbies for businesses on tax issues. “The hope was to get something done by the end of 2017, but this could slip to 2018.”
But, that’s not all. It’s also earnings season. So far, the results have been positive. But there have been a few hiccups…