Trump’s New Tax Law and The Stock Market Effect

david rounick article trump tax law affecting personal taxes philadelphia pennsylvania

Major implications of President Trump’s recently passed tax reform on equity investments

What Exactly Is Trump’s Tax Bill?

President Trump signed the tax bill into law on Dec. 22, 2017. While it’s not possible to go into everything covered in President Donald Trump’s 1,100 plus page tax reform bill that was signed into law in this short article, Mr. Trump stated that it was going to be a huge gift to the middle class of the United States, “the best they’ve ever gotten for Christmas.” Both corporations as well individual taxpayers will be affected so you will likely notice changes first-hand as we head into 2019 (when people will be filing 2018 returns).

First of all, the new tax law provides a reduction of the maximum corporate tax rate from 35% all the way down to a much slimmer 21%, and on top of that, does away with the corporate alternative minimum tax.  The United States will actually be joining the majority of other middle-of-the-road countries around the world in this regard — coming down from what was formerly one of the highest corporate tax rates in the world.

The bill also moves the U.S. toward a territorial tax system in which companies are taxed on profits earned in the U.S.

Individuals will see lower tax rates and rather notable inflation adjustments, although they all come with an expiration date in 2026, with adjustments becoming less and less generous as the we approach the expiration year.  As an individual, you will also be seeing increases in the standard deduction for individuals.

The most complex aspects of the law have to do with changes to taxation of pass-through organizations, such as LLCs and S-corporations. Such “pass-through entities” will receive favorable tax treatment, helping manufacturing and real estate organizations for example, however, other types of organizations such as law firms, medical practices, consultancies and investment management groups are amongst those who won’t be able to take advantage of the tax benefits of pass-through income.

What Will Be the Effect of Trump’s Tax Law on the Stock Market Over Time?

  • The Federal debt will increase.

Although the budget deficit may not rise by a significant amount, long-term issues surrounding entitlements such as Medicare and Social Security continue to be unaddressed on top of any potential increases due to the new tax law.

  • The Fed is likely to hike interest rates at a faster pace.

Higher interest rates equate to larger net profit margins for banks, and when banks experience higher profit margins, individuals have to pay higher interest rates to borrow money, which makes it tougher on them, but acts to fuel the fire of the stock market overall.

  • Specific Industries Looking Toward Positive Growth.

The industries that will experience lower tax rates are most notably retailers, financial services companies, health insurers, telecommunications, technology and energy.  So, if you invest in stocks related directly to these types of industries, you may feel more confident over the long-term in these types of investments.

  • Incentives to Repatriate to the U.S.

President Trump’s new tax plan also provides incentives for companies to repatriate cash by bringing profits received from ventures overseas over prior years, back home to the United States.  Some economists argue that with repatriation comes vast contributions to the U.S. economy.  These incentives are especially tailored to benefit those in technology sectors, such as Apple, Google, Oracle and Microsoft. They all stand to benefit and how that plays out as it relates to the use of any repatriated capital, such as for stock buy-backs, may affect the share prices of many of the largest publicly-traded U.S. companies for years to come.

  • Individuals Will Spend More on Goods & Services

People tend to spend more when they are enjoying an increase in net income, and this may be no different, unless they are considering the purchase of a new home.  Consumers that do not own their homes, may find themselves leaning toward renting for a longer period of time, as real estate prices continue to rise and rates potentially increase. The question is how the new tax law affects discretionary income and will consumers spend more and drive revenue for goods and services. If the numbers increase or even stay on the same path that has been seen over the last few years, all may continue to power forward positively as it relates to the stock market.

  • Standard Deduction Increases Will Affect Home Buying.

This element of the tax law may limit the number of households that choose to itemize deductions, and that may reduce the financial incentive to buy a home rather than rent. Expensive real estate markets in high tax states such as California, New York, New Jersey, etc. are all seeing sellers’ markets with many priced out of real estate purchases.  Such states may see a reduction in demand as a consequence of caps on mortgage interest deductibility as well as severe reductions in the deductibility of state and local taxes. Reduced supply of homes for sale in those markets may provide a partial offset for the demand loss, as current homeowners may be less likely to sell given the tax changes. Regardless, rising real estate prices typically fuel the stock market across the board as well as boost consumer confidence for those owning real estate.

The David Rounick Conclusion

Overall, I would say that investments will increase in the stock market overall for the short-term, but the jury is still out on how this affects the economy long-term as it relates to debt, etc. One extremely positive without a doubt are the booming corporate stock buybacks triggered by the Republican tax cuts.  The stock buybacks deliver a built-in positive for the equity markets that also extend through a short-term time frame. The consensus appears to be that the new tax law will benefit the middle and upper class over the long-term as well as medium to large businesses.  The health of many sectors may benefit from the new tax law, but as economies move in cycles and we see how the debt numbers play out plus how the future elections affect governing in the U.S., it will be interesting to see how the new tax law pans out over the longer term.

32,579 thoughts on “Trump’s New Tax Law and The Stock Market Effect

  1. cialis online says:

    Thanks for a marvelous posting! I genuinely enjoyed reading it, you’re
    a great author. I will remember to bookmark
    your blog and definitely will come back later on. I
    want to encourage one to continue your great work, have a nice
    afternoon!

  2. agen bandarQ says:

    Great weblog here! Also your web site quite a bit up very fast!
    What web host are you the use of? Can I am getting your associate link to your host?
    I want my website loaded up as quickly as yours lol

  3. agen bandarQ says:

    I believe what you posted made a bunch of sense.
    However, think on this, what if you were to write a killer headline?
    I ain’t suggesting your information isn’t good, however what if you added a title that grabbed folk’s
    attention? I mean Trump’s New Tax Law and The Stock Market
    Effect – David Rounick – Real Estate Investor and Property Development is a little
    plain. You might glance at Yahoo’s front page and see how they create
    news headlines to get viewers to open the links. You might add a video or a
    related pic or two to grab readers interested about what you’ve
    got to say. Just my opinion, it would make your blog a little bit more interesting.

  4. DavidBoums says:

    В век технологий надо успевать следовать за развитием компьютеров, но многим тяжело разобраться с техникой. В блоге по ссылке http://www.fast-wolker.ru все, кто общается с компьютером на «Вы», смогут найти много полезного. Здесь автор рассказывает об основных используемых в глобальной сети терминах, делится секретами пользования и в целом учит быстрее адаптироваться. Вы сможете лучше понять интернет, разобраться в нем и достаточно быстро станете активным пользователем среднего уровня. Ни одно странное слово больше не введет Вас в ступор!

  5. agen bandarQ says:

    Trump’s New Tax Law and The Stock Market Effect
    – David Rounick – Real Estate Investor and Property Development
    master dominoqqhttp://jishukuang.net/home.php?mod=space&uid=845&do=profile online dominoqq

  6. кератинового выпрямления says:

    кератиновое выпрямление
    цена
    Кератиновое выравнивание предназначено для пушащихся или кучерявых локонов, в
    том числе со сложным завитком.
    И оно может придать мерклым и конечно поврежденным
    волосам сильный, глянцевый вид,
    сделать их более гибкими.

    Сила заботы содержится внасыщении волос жидким кератином,
    который создает оградительный слой,
    ликвидирующий статическое электричество и разглаживающий
    кутикулу.

    Hаve a look ɑt mу web site: кератинового выпрямления

  7. gambling games says:

    Approximately canada online apothecary into a summary where she ought to end herself, up span circulation-to-face with the opinion and renal replacement remedy himselfРІ GOP Apprehension Dan Crenshaw Crystalloids Cradle РІSNLРІ Modifiers Him Exchange for Nice Eye In Midwest. sildenafil generic viagra prescription

  8. Stanley Ramos says:

    I have been surfing online more than 2 hours today, yet I never found any interesting
    article like yours. It is pretty worth enough for me. Personally, if all site owners and
    bloggers made good content as you did, the net will
    be a lot more useful than ever before.

  9. Pauline Lane says:

    Amazing! This blog looks exactly like my old one! It’s on a totally different
    subject but it has pretty much the same layout and design.
    Outstanding choice of colors!

  10. buy cialis online safely says:

    According OTC lymphatic routine derangements РІ here are some of the symptoms suggestive on that end result : Gyves Up Age Equally Efficient Leadership Associated Discomfort Duro Rehab Thickening-25 Fibrous Top Can Only Out Mr. casino games rivers casino

  11. Lorenzo Carper says:

    I’ll immediately take hold of your rss as I can’t find your
    email subscription link or e-newsletter service.

    Do you have any? Kindly permit me understand in order that I may subscribe.
    Thanks.

  12. do cbd gummies have thc says:

    Unquestionably consider that that you stated.
    Your favourite justification appeared to be on the web the easiest factor to understand of.
    I say to you, I certainly get annoyed at the same time as other folks consider concerns that
    they plainly do not realize about. You controlled
    to hit the nail upon the highest and defined out the entire thing
    with no need side effect , other people can take a signal.
    Will probably be again to get more. Thanks
    do cbd gummies have thc

  13. cbd liquid says:

    Hello exceptional blog! Does running a blog similar to this require a lot
    of work? I’ve no understanding of computer programming
    however I had been hoping to start my own blog soon. Anyway,
    if you have any suggestions or techniques for new blog owners please share.
    I understand this is off subject nevertheless I simply wanted to ask.
    Thank you!
    cbd liquid

  14. buy viagra online cheap says:

    Wrist and varicella of the mechanically ventilated; resolute station and living with as a replacement for both the cooperative network and the online cialis known; survival to aid the specific of all patients to contrive on all sides and to get up with a useful of hope from another unsusceptible; and, independently, of for pituitary the pleural sclerosis of resilience considerations who are not needed to men’s room is. viagra online viagra online usa

  15. GeorgeZEN says:

    Всем привет, хочу порекомендовать вам хороший сайт о Форексе
    С недавних пор так называемые «консультационные центры», которые аферисты из ФорексШарм расплодили по всей стране, стали активно рекламировать доселе неизвестного «инновационного брокера» ФорексШарм ( ). Посмотрим на эту контору повнимательней. Приведенная на сайте ФорексШарм юридическая информация крайне скудная:

    ФорексШарм — брокерская компания родом из Шотландии
    Одна из главных черт национального шотландского характера — осмотрительность и бережливость. Этот народ имеет прагматичную, практическую жилку и привык рационально использовать финансовые ресурсы.

    При этом ФорексШарм, работающий под брендом ФорексШарм, зарегистрирован в офшоре, юридический адрес First Floor, First St. Vincent Bank Building, James Street, Kingstown, St. Vincent and the Grenadines. Какое отношение офшорная шарага, которой без сомнения является ФорексШарм, имеет к Шотландии, аферисты объяснить затруднились.

    Простой поиск в гугле показывает, что юридический адрес полностью совпадает с такими же офшорными помойками как ФорексШарм. Обе конторы являются лохотронами, связаны между собой и неоднократно становились объектами интереса правоохранительных органов в различных странах. Владелец ФорексШарм господин ФорексШарм в настоящее время находится в федеральном розыске по подозрению в мошенничестве в особо крупном размере. ФорексШарм фактически прекратил деятельность на территории СНГ, в России и Белоруссии у аферистов из ТелеТрейд была отозвана лицензия на право осуществления дилерской деятельности.

    ФорексШарм также неоднократно был замечен в обмане клиентов и необоснованных отказах в выплате денег. В прошлом году «институт трейдинга и инвестиций Феникс», поставлявший жертв мошенникам из ФорексШарм , стал фигурантом уголовного дела .

    Информация с сайта ФорексШарм:

    После более чем десяти лет работы на рынке форекс мы пришли к выводу, что хотим создать современную и удобную консалтинговую и аналитическую компанию, которая бы понимала нужды трейдеров и могла предложить лучшие условия для ведения действительно комфортной торговли.

    При этом сайт ФорексШарм с якобы десяти летним стажем зарегистрирован всего два года назад, имеет крайне низкие показатели по «авторитетности» и по сути является дешевым шаблонным ресурсом. Компания ФорексШарм была зарегистрирована в мае 2017 года, ни о каком десятилетнем стаже работы речи быть не может. В сети интернет упоминаний об этом «инвестиционном брокере» практически нет. Причина проста: мошенники решили использовать ФорексШарм совсем недавно и банально не успели распиарить эту никому не известную контору.

    Особо стоит отметить, что ФорексШарм не имеет ни одной лицензии, у этого офшорного лохотрона нет никаких прав на оказание услуг ни на территории Российской Федерации, ни на территории ЕС.

    В мессенджере ФорексШарм активно пиарит аналитические услуги через телеграм-бота. Можно не сомневаться, что итог торговли по сигналам аферистов будет закономерный и печальный. Заработать, доверяя деньги мошенникам, невозможно.

    Вывод

    ФорексШарм, без сомнения, является мошенническим брокером, непосредственно связанным с аферистами из ФорексШарм. Если у вас есть желание поддержать мошенников материально, вы можете отправить деньги в эту сомнительную контору. В остальных случаях рекомендуем воздерживаться от любых инвестиций в этого псевдоброкера.
    Брокер предоставляет трейдерам возможность работы на международном валютном рынке. Современная компания предлагает своим клиентам лучшие условия для ведения комфортной торговли. Сплочённая команда опытных трейдеров, аналитиков, экспертов, разработчиков маркетологов и менеджеров делает всё для своих клиентов.

    В распоряжении трейдеров выбор активов среди валют, металлов, сырья, акций, индексов и криптовалюты. Каждый клиент может открыть торговый счет, подходящий под личные цели и финансовые возможности. Кредитное плечо зависит от выбранного актива от 1:1 до 1:500.

    Множество аналитических материалов делает торговлю с ФорексШарм простой и комфортной. Клиенты могут оценить качество авторской аналитики, экономический календарь, представленный на сайте, новости и прогнозы от Trading Central. У каждого трейдера есть возможность зарабатывать с максимальной вероятность, используя инвестиционные идеи, основанные на реальных событиях.

    Преимущества брокера ФорексШарм:

    1. Высокая точность аналитики.
    2. Отличные торговые условия.
    3. Возможность обучения для трейдеров с различным опытом.
    4. Отсутствие рисков и гарантия безопасности средств.
    5. Удобный вводи вывод средств.
    Брокер предлагает 4 варианта обучения для каждого трейдера, исходя из его опыта и имеющихся знаний до этого:

    1. Базовый курс: «Основы анализа финансовых рынков».
    2. Продвинутый курс: «Технический и фундаментальный анализы финансовых рынков».
    3. Профессиональный курс: «Построение торговых систем и тактик».
    4. Экспертный курс: «Мастер-класс».
    Приятные акции и бонусы помогают начинающим трейдерам освоиться на рынке и не потерять сразу же весь депозит.

    Так же есть возможность открыть демо-счет и тренироваться на нем, пока трейдер не почувствует в себе уверенность.

    Связь со службой поддержки осуществляется с помощью телефона или электронной почты. Сотрудники компании владеют всеми популярными языками мира, поэтому каждый трейдер будет иметь возможность решить свою проблему.

    http://www.forex-book.top

  16. Suzanne Bowman says:

    It is the best time to make some plans for the future and it is time
    to be happy. I have read this put up and if I may I desire
    to suggest you some interesting things or suggestions.

    Perhaps you could write next articles relating to this article.
    I want to read even more issues approximately it!

  17. Pingback: generic for viagra

  18. Pingback: buy viagra uk

  19. cannabis oil and adhd says:

    Hi there! This is kind of off topic but I need some advice from an established blog.
    Is it very difficult to set up your own blog?

    I’m not very techincal but I can figure things out pretty fast.
    I’m thinking about setting up my own but I’m
    not sure where to start. Do you have any tips or suggestions?
    Thanks
    cannabis oil and adhd

  20. Pingback: generic viagra

  21. Pingback: generic viagra without subscription walmart

  22. معاد says:

    Hello Dear
    There is definately a great deal to find out about this issue. I really like all of the points you’ve made.
    It’s an amazing article in support of all the internet visitors; they will take benefit from it
    Greetings! Very useful advice within this article! It is
    the little changes that will make the most important
    changes. Thanks a lot for sharing!

  23. Pingback: buy viagra new york

  24. Pingback: female viagra pills for sale

  25. Pingback: buy viagra without prescription

  26. custom essay says:

    I’ve been surfing online more than three hours today,
    yet I never found any interesting article like
    yours. It’s pretty worth enough for me. In my view, if all webmasters
    and bloggers made good content as you did, the web will be
    a lot more useful than ever before.
    custom essay
    https://essaywritingtld.com/

  27. kbju22 says:

    Without wasting a one sec of euphuistic time, specialists from the Republican Orderly and Hands-on Center of Neurology and Neurosurgery performed an importunate worker to shift the tumor. canada pharmacy canadian online pharmacies

  28. Pingback: viagra substitute walmart

  29. Pingback: sildenafil

  30. ecodaw says:

    Автономная канализация в самаре

    Обеспечиваем лучший завершающий результат
    Высококачественное сопровождение
    Автономная канализация цена под ключ-это сегодня наш профиль
    Автономная канализация в частном помещении – лучший выбор от компанииСборка септика – изрядно непростой процесс, предполагающий не только лишь строительство, но и дополнительно выбор нужной системы.
    Септики – это несложная сборка с специфической конструкцией перелива, фильтрации и сложной электроникой

  31. will writing service says:

    You’re so awesome! I do not suppose I have read anything
    like that before. So wonderful to discover another person with some unique thoughts on this subject matter.

    Really.. many thanks for starting this up. This site is one thing
    that is required on the web, someone with a bit of originality!

    will writing service
    https://buyessayscc.com/

  32. Pingback: buy viagra cheaply

  33. Brooke Medel says:

    It is the best time to make some plans for the long run and it’s time to be happy.

    I’ve read this publish and if I could I want to counsel you
    some interesting things or suggestions. Maybe
    you could write next articles relating to this article. I want to read more
    issues approximately it!

  34. Josephmon says:

    A new company in which over half a year more than 9 million people https://crowd1.com/signup/tatyanaflorida have registered. Profit comes from the shares of the world’s largest gaming channels. Gambling, mobile share with us 50%. Passive and active income. Viber/WhatsApp +12487304178 Skype tatyana.kondratyeva2

  35. Tristaytfy says:

    It’s the best time to make some plans for the future and it is time to be happy. I have learn this submit and if I may I want to counsel you few attention-grabbing issues or tips. Maybe you can write subsequent articles referring to this article. I wish to read more things about it!

  36. canada viagra says:

    ISM Phototake 3) Watney Ninth Phototake, Canada online drugstore Phototake, Biophoto Siblings Adjunct Group therapy, Inc, Impaired Rheumatoid Lupus LLC 4) Bennett Hundred Detention centre Situations, Inc 5) Transient Atrial Activation LLC 6) Stockbyte 7) Bubonic Resection Class LLC 8) Indefatigability With and May Make headway in requital for WebMD 9) Gallop WebbWebMD 10) Velocity Resorption It LLC 11) Katie Judge and May Bring forward instead of WebMD 12) Phototake 13) MedioimagesPhotodisc 14) Sequestrum 15) Dr. generic viagra names Xsrmxv nddple

  37. viagra for men online says:

    In January pattern year, small dobulg level ill. It’s okay, honourable a peaceable viagra, which passed in five days. But the temperature without warning returned away the end of the month: the thermometer showed 39. The old bean was urgently hospitalized with fever and convulsions. A few hours later, three-year-old Yegor stopped breathing – he flatten into a coma. With the inform appropriate of a ventilator and a tracheostomy, the doctors resumed the work of the lungs, but oxygen starvation struck the brain. The kid has lost the total that he managed to learn in three years. The diagnosis is posthypoxic encyphalopathy.

  38. Kizzyflae says:

    Hi! I’ve been reading your web site for a while now and finally got the courage to go ahead and give you a shout out from Huffman Tx! Just wanted to tell you keep up the fantastic work!

  39. pool shade sail says:

    I wanted to send you a tiny note to give many thanks again for your precious principles you’ve provided on this page. It has been so particularly open-handed with you to allow openly what a lot of folks could have marketed as an ebook to help with making some cash for their own end, notably considering the fact that you could have tried it if you decided. Those points as well served to become good way to be aware that some people have the identical keenness really like my own to know somewhat more with regards to this issue. I believe there are numerous more pleasurable times ahead for individuals who read your website.

  40. Fabianvwbp says:

    I am extremely impressed together with your writing talents as well as with the layout on your weblog. Is this a paid subject matter or did you customize it your self? Anyway keep up the nice quality writing, it’s uncommon to see a nice blog like this one today..

  41. Rachalbpry says:

    Terrific article! This is the kind of info that are meant to be shared around the net. Disgrace on Google for no longer positioning this publish upper! Come on over and talk over with my web site . Thank you =)

  42. Josephmon says:

    Все для лестниц, погонаж оптом! http://35stupenek.ru/ – Комплектующие для лестниц, двери межкомнатные, перила для лестниц, мебельные щиты, балясины для лестниц, деревянные плинтуса, погонажные изделия, имитация бруса, резные деревянные картины, ступени для лестниц. Поможем с доставкой в любой регион!

  43. Lois Kalis says:

    I needed to draft you a tiny word just to say thanks as before regarding the nice guidelines you have shared here. This is so surprisingly generous of you giving unhampered what some people could possibly have offered for an e book to earn some cash for their own end, most notably given that you could possibly have done it if you wanted. The good tips as well acted as a great way to know that other people online have a similar interest just as my personal own to know the truth way more in respect of this issue. I am sure there are many more pleasurable instances up front for individuals who examine your blog.

  44. Pingback: buy cialis online

  45. Pingback: where can i buy viagra pills