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 “we’re doing a massive tax plan” so 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%.
CEOs that were present at the Trump meeting include Brian Cornell, Target; Marvin Ellison, J.C. Penney; Hubert Joly, Best Buy; Art Peck, Gap; Bill Rhodes, AutoZone; Stefano Pessina, Walgreen Boots Alliance; Greg Sandfort, Tractor Supply; Jill Soltau, Jo-Ann Fabric and Craft Stores.
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!!