Trump tax reform plan fog or inhibit US stocks rally
After a major setback in US President Trump's health care reform bill, Wall Street's expectations of a large-scale tax cuts in the United States began to cool, which could allow investors to prepare for the global stock market decline.
The White House has shifted its attention to tax reform after Republican leaders were forced to withdraw the US health care reform bill on Friday. The medical reform bill aims to abolish the Obama administration's health insurance bill passed in 2010.
Trump will cut taxes (including corporate tax cuts) as a major commitment in its 2016 presidential campaign. Trump won the election on November 8, stimulating the appetite of businesses and investors. They see the passage of the bill as a de facto great success.
But the Republican infighting led to the withdrawal of medical reform by the House leaders, as well as medical reform brought about by the expected savings disillusionment, which led to reform efforts to face more problems.
"Some of the terms of the tax reform bill now seem to have to be reduced or even removed," said Robert Willens, an independent tax analyst. "Obviously, the plan must be gentle."
Others are not so optimistic.
"The possibility of a corporate tax cut in 2017 is getting smaller," said Michael Purves, chief global strategist at Weeden & Co. "Tax cuts are a big contributor to potential profit."
Goldman Sachs analysts believe that they are at the beginning of the next 10 years, about $ 1.75 trillion is expected to face "some downside risks", but they still believe that an agreement will be reached.
Trump has said he wants to cut the corporate tax rate from 35% to 15-20%.
Shrink version of the tax reform target may stimulate the concerns of fund managers that the US stock market valuation is too high.
According to Thomson Reuters data, analysts expect the S & P 500 constituent stocks this year, profit growth of 11%, compared with 2016 only 1.4% increase greatly increased. However, many analysts have not yet taken into account the tax cut.
The White House has shifted its attention to tax reform after Republican leaders were forced to withdraw the US health care reform bill on Friday. The medical reform bill aims to abolish the Obama administration's health insurance bill passed in 2010.
Trump will cut taxes (including corporate tax cuts) as a major commitment in its 2016 presidential campaign. Trump won the election on November 8, stimulating the appetite of businesses and investors. They see the passage of the bill as a de facto great success.
But the Republican infighting led to the withdrawal of medical reform by the House leaders, as well as medical reform brought about by the expected savings disillusionment, which led to reform efforts to face more problems.
"Some of the terms of the tax reform bill now seem to have to be reduced or even removed," said Robert Willens, an independent tax analyst. "Obviously, the plan must be gentle."
Others are not so optimistic.
"The possibility of a corporate tax cut in 2017 is getting smaller," said Michael Purves, chief global strategist at Weeden & Co. "Tax cuts are a big contributor to potential profit."
Goldman Sachs analysts believe that they are at the beginning of the next 10 years, about $ 1.75 trillion is expected to face "some downside risks", but they still believe that an agreement will be reached.
Trump has said he wants to cut the corporate tax rate from 35% to 15-20%.
Shrink version of the tax reform target may stimulate the concerns of fund managers that the US stock market valuation is too high.
According to Thomson Reuters data, analysts expect the S & P 500 constituent stocks this year, profit growth of 11%, compared with 2016 only 1.4% increase greatly increased. However, many analysts have not yet taken into account the tax cut.