Wednesday was a big day for the United States. It was the day that the Donald Trump tax plan, or at least a brief overview of what the Trump administration plans to accomplish, was released. The goal of the tax plan is ultimately to stimulate growth in the United States economy. While the Dow started to soar at the beginning of the announcement, it quickly fell from highs before bouncing back up again. Today, we’ll talk about the Trump tax plan, why the Dow wasn’t sure how to react, and what binary options traders should be watching for ahead.
The Trump Tax Plan
As mentioned above, the Donald Trump tax plan for the year 2017 was released today. At 1:30 eastern time, a conference was held to discuss the plan. The plan was a relatively simple one. So simple in fact, that the briefing associated with the plan that was handed to the attending audience was only one page long. Here are the key points to the plan…
- Business Taxes – Business taxes are being reduced dramatically. In fact, the Trump plan includes a flat rate business tax of 15% no matter the size of the business. The plan is also designed to make it cheaper for businesses to repatriate funds, hopefully driving trillions of dollars back into the United States economy.
- Investing – In the conference, there wasn’t much offered with regard to taxes associated with investing. However, it was mentioned that the plan aims to reduce taxes on investment income as this income is there to spur economic growth.
- Personal Taxes – Finally, the Trump tax plan aims at simplifying the personal tax process. In particular, there will only be 3 tax brackets. Those brackets include a 10% bracket, a 25% bracket, and a 35% bracket. Also, personal tax write offs are largely going to go away, with the exemption tax write offs associated with home ownership, child care, and charitable giving.
Why The Dow Jones Industrial Average Didn’t Know How To React
At first glance, the tax plan seems great. Businesses will have to pay less in taxes, and will be able to repatriate funds at a much lesser expense. As a result, businesses will have a better ability to grow. So, why is it that the Dow Jones isn’t skyrocketing at the moment? The answer is simple…
The tax plan really isn’t much of a plan at the moment. It’s more of a sheet of paper with bullet points. While if all of the bullet points are accomplished, it will likely result in economic growth, and therefore growth in the market, but, well there are some issues here. With such a minimal offering of what the tax plan actually consists of, investors are uncertain of the details. Not to mention, this plan needs to make it through congress before it’s passed, and considering the attempt with Obamacare, chances are slim.
What Binary Options Traders Should Be Watching For Ahead
Moving forward, binary options traders should be keeping a close eye on the Dow Jones Industrial Average as the index is likely to present several opportunities ahead. In order to take advantage of these opportunities, there are a few big news stories you’ll want to watch. First and foremost, keep a close eye on Donald Trump’s tax plan and the progression of this plan. Also, pay attention to the Brexit, geopolitical conditions, and French elections. Any updates to any of these topics will likely lead to movement in the Dow.
What Do You Think?
Where do you think the Dow Jones Industrial Average is headed moving forward? Join the discussion