Dow Hits 20,600 After Trump Hints At "Massive Tax Plan"

Tyler Durden's picture

Trump did it again: one week after he promised to unveil "phenomenal" tax cuts, moments ago in his meeting with retail CEOs, who are meeting with the president to get him to kill the border adjustment tax idea, he pulled another OPEC, using the precise word the algos were looking for, and this time said that "tax reform is one of the best opportunities to really impact our economy," Trump said. "So we're doing a massive tax plan that's coming along really well."

He also said that there will be a “much, much simpler tax code” that will lower rates for everybody in every bracket. He added that “other than H & R Block, people are going to love it.”

Of course, people would love to know when it is coming, to which Trump had no explicit answer, instead saying the "tax plan will be submitted in not so distant future

Trump then said that “there’s a lot of confidence in our economy right now,” citing both the jobs report and the level of the stock market.

Speaking to the retail CEOs, Trump added the retail industry is important to country in supporting millions of jobs, which however did not explain if the BAT will be cut - if so, then the level of corporate tax cuts would be far less, as there would be no partial revenue offset needed to balance the roughly $2 trillion in revenue losses over the next decade from cutting the tax rate from 35% to 20%.

Retailers are among the biggest opponents of border adjustability, arguing that it would result in higher prices for consumers. A number of Republican senators also have concerns about the proposal, putting its future in jeopardy.

The White House has given mixed signals on whether the president supports the border adjustment tax. Trump called it "too complicated" in an interview with The Wall Street Journal, but the White House later said that taxing imports could be one way to pay for a wall on the U.S.-Mexico border. Gary Cohn, head of Trump's National Economic Council, told CNBC earlier this month that border adjustability is "one of the options that's on the table."

Trump during Wednesday's meeting also spoke about his plans to cut regulations. "We're cutting regulations in just about every industry," he told executives from companies including Target; J.C. Penney; Best Buy; Gap; AutoZone; Walgreen Boots; Tractor Supply; Jo-Ann Fabric and Craft Stores.  The retail executives are slated to meet with House Ways and Means Committee Chairman Kevin Brady (R-Texas) and Senate Finance Committee Chairman Orrin Hatch (R-Utah) later on Wednesday.

As for stocks, one the headline scanning algos saw "massive" tax plan statement and the following headline...

  • TRUMP: WE WILL LOWER TAX RATES FOR PERSONAL, BUSINESS

... they quickly pushed stocks to new all time high - breaking above 20,600!!

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Osmium's picture

Everyone pays lower taxes?  So they will be running .gov on printed money only?

The central planners's picture

That means tonnage of new debt to pay over the past debt. Great plan Trump, YOU IDIOT!!!

CounterPartyVice's picture

Permanently increasing high stock plateau, don't overthink it.

SumTing Wong's picture

I'm hoping it is something like a flat tax. Get rid of all the stupid deductions that try to give people an incentive for doing what .gov wants and instead free the people to spend their money the way they want. It would deflate several bubbles. Maybe "pop" is the better word there.

pods's picture

You know there is something wrong when the world's fastest supercomputer has to be applied to doing your taxes.

Not so elementary my dear Watson!

pods

Anon2017's picture

Don't count on a flat tax, ever. Members on the tax writing committees haul in large campaign contributions every time they tinker with the tax code. Some donors are looking for new tax breaks, others are looking to preserve the tax breaks they already have. 

 

 

Countrybunkererd's picture

If you amputate 20-30 percent of the useless eaters in government (being kind here) where is the problem?  Why do you think they are going insane, they know they are unemployable in the real world.  When you are a patient in surgery for a triple bypass you don't need to worry about an ingrown toenail.

NugginFuts's picture

Of course they will. But I would lay heavy odds he never gets his "yuuuuge" tax cut passed. Congress writes and passes spending bills, not the Executive branch, and they can't agree on jack squat right now.

He can talk it up all he wants, but he can't pass it. 

To quote himself: “The final key to the way I promote is bravado. I play to people’s fantasies. People may not always think big themselves, but they can still get very excited by those who do. That’s why a little hyperbole never hurts. People want to believe that something is the biggest and the greatest and the most spectacular. I call it truthful hyperbole. It’s an innocent form of exaggeration—and a very effective form of promotion. 

NoDebt's picture

I would lay odds they'll get something done.

Libs can't believe it when they lose, but the flip side of that coin is that people like us often suffer from not believing we'll ever win.  Don't be so pessimistic.  SOMETHING will get passed.  Just keep your expectations of what gets passed modest.

 

NugginFuts's picture

"Modest expectations" is exactly the opposite of what is being priced into the market right now.

HRClinton's picture

Bill and I love lower taxes, so we can BTFD.  And order top shelf take out pizza.

Whose wallet are you in?

Mr Pink's picture

David Brock, yes the faggot pedophile former bf of Comet Ping Pong owner has received 40 million dolllars from Soros. In addition to CTR and Media Matters he has now formed Shareblue and has stepped up the paid shill game.

ZH has become almost unreadable because of the increase of paid trolls. 

Tylers please do something to stop this

Chupacabra-322's picture

@ PInk,

Glad to see I'm not the only one who's noticed the uptick of paid Trolls & "Agent Smiths" on the Threads lately.

Bay of Pigs's picture

As a long time troll buster around here, You two are entirely correct.

Its been several years since we've seen this happen.

Dr. Richard Head's picture

"When things get serious you have to lie" - Juncker

https://www.youtube.com/watch?v=P4fEJIluuR0

Activity or trolls around here definitely spike when a crisis approaches. 

 

Arnold's picture

I've had some goofy glitches on my systems lately, and one taken down.

The yahoos are just getting started.

TradingTroll's picture

Don't you people get it? Tylers are gone from the discussion threads. They posted their 'see ya' article and left the Discussion threads to visitors. They need to have plausible deniability for the coming shitstorm.

So, because they don't touch the threads, we have dozens of Shepwave accounts posting spam, lots of posters spamming for making $7k a month working from home and miscellaneous garbage from SJWs, pro-Clinton groups etc.

It's over. I knew it was over when the Tylers posted that see ya piece.

Fight Club is now Anarchy Club. The Tyler's have left the building before the big Fight even got started.

Haus-Targaryen's picture

So I've been active in the comments section for years now.  

What "see ya" piece are you talking about? 

NoDecaf's picture

you mean I can't really make 7k a month assembling models at home?

Lost in translation's picture

Link?  I'd like to read that.

Upvoted, btw.

TwelveOhOne's picture

There was a spammer the other day, I think pretending to post a Presidential tweet that was foul, who posted it 40 times on one article, and over 20 on another.  I reported by email both of the threads (I sent two separate emails).  That spammer was cleaned up.

There's someone paying attention, even if it's not the Tylers.

Bunghole's picture

Those Dodge RAM 2500's made in Mexico just got more expensive to cover the loss in tax revenues.

'Merica!

Usura's picture

Assuming that Trump does not gut the bureacracy.

lester1's picture

President Trump should tell the new Fed chairman nex t year to do a one time $1 trillion dollar gold buyback stimulus program at $2000/oz. Anyone can sell their  physical gold to the Fed..It would be a boon to the US economy and replenish the gold supply of the Treasury.

 

Win-win for everyone!!

thesonandheir's picture

$2000?

 

 

Far too cheap.

 

 

Try multiplying by 10 for a start.

silverer's picture

The same as since 1913. Just more. A lot more.

Bay Area Guy's picture

He said everyone's tax rates would be lower. He also said the tax code would be greatly simplified. I assume that means there would need to be rather drastic eliminations of deductions and tax credits. Those are what complicate the tax code.

Which means every single special interest group, on all sides of the political spectrum, will have the long knives out for this proposal.

The country needs a flat tax, but it's never going to get one because of decades of special interest money going to Congress-scum to rewrite tax laws to benefit them.

TePikoElPozo's picture

your income taxes do not go towards .gov

they go to the UN

the IRS is a part of the UN

 

Tarrifs, on the other hand, do go towards .gov and not towards the UN

now you know why "they" are agianst tarrifs and for income taxes

Dr. Richard Head's picture

The Grace Commission report of Reagan stated that ALL Federal Income Tax theft goes to pay the interest on the debt that the central banks create out of nothing and not a single penny goes to pay for any of the promises the politicians lay out there. 

 

yttirum's picture

Actually, it goes ... Fed --> IRS --> then UN.

Brutus Buckeye's picture

Flat tax, no exemptions, no deductions and everyone who works pays & has skin in the game?

Got The Wrong No's picture

Lower Taxes in theory should stimulate the economy and in turn generate more tax revenue. This board is really getting fucked up with Trolls 

Itshappening's picture

https://www.youtube.com/watch?v=UYSRtxSUBrk

unrelated but i found a way to turn cooking oil and water into fuel

i heated olive oil on high til it starts to steam and then i splashed very little water onto it and got superheated steam. this steam burned like butane.

please watch and show others. im trying to get this thing funded. thanks

Bunghole's picture

Too many words, Tyler.

I'm used to 140 characters or less with the new boss.

Dr. Richard Head's picture

Deficits don't matter, 100-year long bonds, fuck it.  I would enjoy not having half of my labor going to the Fed's, State, Local, and ex-Wife.  Hopefully a few in this mentioned group die soon. 

Turin Turambar's picture

Meh, 1000 year MAGA long bonds if they're serious; otherwise... Amateurs!

silverer's picture

I'm just curious how it will work when the interest payments on the debt exceed all revenue.

Dr. Richard Head's picture

The Federal Reserve will not monetize the debt - https://www.youtube.com/watch?v=Fi32WvoRgU4

Ben-Beard the Pirate.

indygo55's picture

They want to pump that market to get the options and benes out of the companies before they blow up. Every one of those guys at that table knows this bubble is part of the illusion created by the FED and the BIS to stripmine the population. Its working. People are losing everything just to put food on the table. O/T I had a young mother and a son, around 12 come into a store I was in. They looked beat and tired and dirty. The kid looked scared and tired and she says, "I'll clean your bathrooms for a sandwich for my son." I kid you not. I handed her a ten dollar bill (all I had at the moment) and you'd think I was a god. I'm not. 

Kido's picture

Trade Trump just like Oil, get ready for the headline and just BTFATH

Chupacabra-322's picture

Damn, I miss the days of Bush Jr. War Criminal & all. At least he left $500 on my dresser draw early on.

Got The Wrong No's picture

But then it was taken away 10 fold 7 years later. 

Chupacabra-322's picture

+1. Guess that wa the reach around before getting Anally Fucked without any Lube. Better yet, it was more like a "DP."

silverer's picture

Somehow I get the feeling that this is bad news. I would at most redirect wasted money toward projects that would increase productivity. There's plenty of that. But I know the screaming would never stop if you defunded wasteful programs. Obama already spent the available money, with no results. Now you have to work the plan with little money, because technically, the US is insolvent.

Got The Wrong No's picture

What the fuck. If he raised taxes you would bitch about that. People just want to bitch about everything. 

Stef1304's picture

That's nice...

But if POTUS doesn't tackle the external (military complex & intelligence community pressuring upon presidency & his foreign policies) and internal (Fed & stealglass act back on track) issues, it will be all for naught.   

dude duderson's picture

Yes, finally!  Make Corporate buybacks great again! 

Consuelo's picture

 

 

Is that Cohn there with the shit-eating grin...?