In the week ahead, watch tax reform, the stock market and the economy

The inventory market isn’t the financial system. The financial system isn’t the inventory market.

These statements could also be self-evident, however too typically the monetary industrial complicated conflates the 2. Whereas the inventory market and the American financial system are interwoven, they don’t seem to be clones, particularly because it pertains to the tax laws shifting on Capitol Hill.

The tax invoice is more likely to go earlier than the Home and Senate within the week forward as the 2 chambers seeks to ship a last model to President Donald Trump earlier than Congress begins its vacation break.

It seems that each the very best particular person tax price and the company tax price might be reduce. There will probably be different modifications to what and the way a lot individuals and corporations can deduct from their incomes.

Don’t let anybody inform you with certainty how these modifications will have an effect on the financial system.

How will wealthy People use their tax financial savings? Will a cap on mortgage curiosity deduction maintain down house values, the most important asset for many People? What would the tax invoice do for employee productiveness? How will it affect manufacturing and consumption conduct?

It’ll take years to reply these financial questions. As outgoing Federal Reserve Chair Janet Yellen stated at her…

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