Republicans Ponder: What if the Trump Tax Cuts Cost Nothing?

Published On Nov 23, 2024, 5:03 AM

Republican leaders are currently in discussions about extending temporary tax cuts that were passed in 2017, which are set to expire next year. If these cuts are not extended, taxes will increase for most Americans. The Congressional Budget Office estimates that extending these cuts for 10 years would reduce government revenue by approximately $4 trillion. Some Republicans are seeking alternatives to offset this cost through other tax increases or spending cuts, while others argue that extending the cuts does not constitute a tax hike, aiming to frame it as a way to prevent a $4 trillion tax increase.

Read full article

Stock Forecasts

XLYView XLY chart on TradingView

Positive

Given the ongoing discussions around tax cuts, investor sentiment may shift positively towards sectors benefiting from tax relief, such as consumer discretionary and financials. Investors should look out for stocks that could gain from increased disposable income or reduced corporate taxes.

XLPView XLP chart on TradingView

Negative

The debate around deficit impact may concern investors in sectors sensitive to fiscal policy shifts, especially utilities and staples that could be affected by potential cuts in government spending. If tax hikes are implemented instead of extensions, these stocks may react negatively.

Related News

Impending recession is 'boiling up from the bottom,' chief economist warns | Fox Business Video

First Trust Advisors chief economist Brian Wesbury on tight consumer credit conditions, the state of the stock market and how Trump's Cabinet picks will impact the macroeconomy.

XLP
XLY

This week in Bidenomics: The Republican economy takes off

Nov 22, 2024, 2:07 PM

Republicans suddenly think the economy is much better. Democrats think it is worse. Why might that be?

XLY

Why Trump Allies Say Immigration Hurts American Workers

Nov 22, 2024, 5:03 AM

JD Vance and others on the “new right” say limiting immigration will raise wages and give jobs to sidelined Americans. Many studies suggest otherwise.

XLB
XLY