It was an AMAZING moment at the Wall Street Journal when the impact of the tax cuts on 2018 was analyzed. It was expected that the cuts in the tax reform plan by the GOP would be positive. What was not anticipated was how strong a positive impact that it would be. This article in the WSJ is pretty clear on where we are headed next year. You can thank The Donald later if you wish.
As Written By John Carney for Breitbart:
Tax cuts are going to grow the economy by much more than expected.
That’s the verdict of the Wall Street Journal‘s prestigious “Heard on the Street” column. Importantly, Heard on the Street is run by the news side of the WSJ, not its tax-cut loving editorial page. So there’s no particular pro-tax cut or pro-Republican bias at work here.
Justin Lahart of Heard writes:
There were several surprises for investors when Republicans unveiled their final tax bill Friday, but the most significant is that they add up to a bigger boost to economic growth next year.
The bigger stimulus could fundamentally change how the market behaves in 2018. Sales and profits will be stronger than most investors expect. But with the unemployment rate low, wage pressures will mount faster, and inflation should pick up more. If the tax plan passes, as seems likely, it could lead the Federal Reserve to raise rates faster, putting the bond market at risk.
The tax plan was always expected to juice the economy, but the Senate version, which passed after the House approved its bill, had relatively modest short-term stimulus. While the stock market kept rising in anticipation of a cut, the bond market hardly budged. The bill unveiled Friday front-loaded more than $200 billion in stimulus for next year. Economists had been penciling in a boost of about a third of a percentage …….
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