May 3, 2017

Trump's proposed Tax Reforms is betting on supply side economics


President Trump tax reforms is making news headlines but could it be good for the stock markets and the economy? Doug Kass says he is looking to short the markets when the Tax Reform news is announced.

He does not think the tax reforms will be introduced and says there is no clear path to the passage of the proposed tax bill. There is significant opposition to it from both the Democrats and the Republicans. Also Kass does not think it could increase the US domestic GDP growth. 

He also cites the lack of evidence that low tax rates would produce an increase in capital spending in the US economy. 

Wealth Transfer
Doug Kass also thinks if the tax reforms proposal is delivered, it will likely benefit the wealthy like President Trump himself, thus increasing the gap between the rich and the poor.






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