How Tax Cuts and Infrastructure Spending Impact Equity Markets

“I did get a feel there was a chance for a deal on taxes”, Mulvaney told CNBC last week after Trump and other top White House staffers (including Mulvaney) shared Chinese food with Senate Minority Leader Charles Schumer, D-N.Y., and House Minority Leader Nancy Pelosi, D-Calif. “Yet Ryan agreed in broad terms with the president’s goal of protecting hundreds of thousands of undocumented immigrants while postponing talk of a border wall but toughening US border security in other ways”. Unless Trump and his allies in the Congress do something radically different and surprise us, they will offer a plan that disproportionately rewards the rich and adds to the deficit. The prospects are not bright. Last November, fully 226 of the GOP’s 441 House wins (94 percent) had double-digit victory margins.

But with that nonsense of offsets out of the way, a big tax cut – though not tax reform – is on the horizon. So did his ham-handed demands and threats to Republicans who objected to his antics. Above all else, Trump considers himself a dealmaker. To make matters worse for immigration hawks, Trump is also not requiring funding to build a wall along the Mexican border as a condition of the possible deal. Indeed, for some Republican lawmakers, that deal might very well get in the way.

As Wall Street Journal columnist Peggy Noonan has noted, Trump did not run as a standard Republican.

First, many members of the so-called Freedom Caucus are not oblivious to the harm done to the Republican Party due to their intransigence during the summer Obamacare votes. The Senate hasn’t acted yet, but no one in that chamber is taking the lead in pressing for a companion package of cuts. “But I think ultimately all that bluster is a blunder and it could get us into some real deep trouble”, Moulton said.

Senate leaders are set to reveal the details of the plan on September 25, at which point bipartisan talks will likely start.

“And I don’t want to be disappointed by Congress. McConnell and Sen. Schumer a consensus proposal within 10 days or so”. Trump, he said, is “recognizing, ‘I don’t just have to play with you, Paul and Mitch”. And the American people expect reform, GOP. Lindsey Graham, R-S.C., Dean Heller, R-Nev., and Bill Cassidy, R-La. The Obama administration chose to treat it like a law.

Ditto on the president’s ever-receding plans for a trillion-dollar infrastructure jobs program. Now Bannon is gone and Trump has thrown in with the Democrats. “If reports true 100%”, Hannity tweeted.

Meanwhile, do not forget to wait for whatever this president says to evaporate into a void to be filled by generals, Ivanka, the Cabinet and Congress, fashioning a kind of pragmatism by default.

Republican officials and the Trump administration have kept tightly under wraps major elements of the plan, from the fate of deductions for mortgage interest and charitable gifts to the treatment of property, state and local taxes, and even to the tax rates that individuals and businesses would pay. For the MA congressman, it’s necessary for Democrats to “start winning again”.

Key Republican immigration hawk Steve King said “Trump’s base is blown up, destroyed, irreparable, and disillusioned beyond fix”. And people of all ilks were sane enough to get out of evacuation zones on that wetland peninsula called Florida when Irma approached. He is serious about privatization schemes, euphemistically known as “public-private partnerships”, that enrich politically connected investors. That is a positive, compassionate move that should bring support from those who have worked hard to protect the 800,000 people who now live in daily fear of deportation from the only homeland they remember. Exhausted of suffering one bad news cycle after another, Trump, like the agonized rich man desperate for but a single drop of water on his tongue, desperately wanted a few days of winning in the eyes of the media.

Since the beginning, the apoplectic, spittle-flying left, including the Democratic Party, the media (one and the same, really), academia and fellow travelers, the Hollywood establishment and an assorted variety of unhinged characters have done everything in their power to destroy this president.