As most probably know, there are many benefits to each type of buisness, however each type has its downfalls as well. For corporations specifically, one of the major valleys is the corporation tax. This is essentially a double tax where not only does the corporation gets taxed on its income, but also on whatever dividends it gives out. As of right now, the corporate tax sits at 35%, but the reason this is noteworthy is because President Trump is promising to slash this down to 15%. While 15% might not be realistic, the house republicans are pushing for 20% instead, nonetheless we should expect a 10-15% decrease soon.
What does that mean for all of us? Well, the stock market has taken note of this as the market has increased at astounding paces over the past few months since election night. When Trump took office the market stood at 17,964 points and now sits at 21,005. Since he has taken office the market has hit 19, 20, and 21 thousand all for the first time in history including a record 24 day stretch where the market jumped from 20 to 21 thousand points.
Original Story: Fox, Michelle. “If Trump Fails to Deliver on a Corporate Tax Cut, Expect a 10-15% Correction, Says Expert.” CNBC, CNBC, 2 Mar. 2017, www.cnbc.com/2017/03/02/if-trump-fails-to-deliver-on-a-corporate-tax-cut-expect-a-10-15-correction-says-expert.html. Accessed 5 Mar. 2017.