Trump garners support from Senate and House of Representatives to pass the $1.5 trillion tax overhaul.

Daisy Harvey

2017-11-17 09:42:00 Fri ET

The Trump administration garners congressional support from both Senate and the House of Representatives to pass the $1.5 trillion tax overhaul (Tax Cuts & Jobs Act of 2017). With Republican majority in both congressional chambers, this current fiscal reform represents President Trump's first landmark economic policy legislation. The typical supply-side macroeconomist welcomes this fiscal overhaul and expects tax relief to trickle down to most U.S. households as well as corporations. Each American household will expect to benefit from this fiscal legislation in the form of tax cuts from $4,000 to $9,000 per annum. Also, most U.S. corporations face a substantial decrease in the effective corporate income tax rate from 35% to 21%. Furthermore, large U.S. multinational corporations can enjoy tangible tax credits for offshore cash repatriation during the indefinite Trump tax holiday. The Trump administration suggests that this tax overhaul is likely to help boost wage growth, job creation, and labor and capital productivity.

However, some market observers fear that the resultant tax cuts offer key U.S. corporations such as Cisco, Pfizer, and Coca-Cola etc to distribute cash to their shareholders in the form of near-term dividend payout and share buyback.

 


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AYA fintech finbuzz analytic report on the global macro economic outlook Winter-Spring 2020

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Buffett discusses Berkshire's cash ambition, its reinsurance business, and his succession plan.

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2018-02-23 09:35:00 Friday ET

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Public sentiment turns quite a bit against Facebook in light of the public issues around fake news.

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Fed Chair Janet Yellen confirms with her successor Jerome Powell the final interest rate hike in December 2017.

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Fed Chair Janet Yellen confirms with her successor Jerome Powell the final interest rate hike in December 2017.

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Treasury bond yield curve inversion often signals the next economic recession in America.

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Can the Chinese renminbi become the next dual global reserve currency in addition to the American dollar?

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Can the Chinese renminbi become the next dual global reserve currency in addition to the American dollar?

Technological advances, geopolitical risks, and pandemic outbreaks cannot shake investor confidence in the American dollar as the global reserve currency.

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