Fed’s Policy Likely Will Mute Positive Effects of Tax Cuts

By Rob Willams – Re-Blogged From Newsmax

President Donald Trump’s tax cuts that went into effect this year will have a muted positive effect on the economy as the Federal Reserve raises interest rates and reduces its debt holdings, Hoisington Investment Management Co. said.

“The full spectrum of monetary policy is aligned against stronger growth in 2018,” chief investment officer Van Hoisington and economist Lacy Hunt said in a Jan. 11 report. “This monetary environment coupled with a heavily indebted economy, a low-saving consumer and well-known existing conditions of poor demographics suggest 2018 will bring economic disappointments.”

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America Needs a Debt Cut Before a Tax Cut

By Michael Pento – Re-Blogged From Pento Portfolio Strategies

President Donald Trump has finally unveiled his broad blueprint for tax reform. Well, at least let’s call it a sketchy outline of one. It would take the top income tax rate for small businesses from 35% to 15%. Theoretically, a business that makes $500k in taxable income, which had been paying roughly $175k in Federal taxes, would then pay closer to $75k. This means our business in this example, which saved 100k in Federal taxes, would have to grow its taxable income to $1,166.666, or by 133% to provide the government with revenue neutrality.

Even though Trump’s proposed tax plan offers more questions than answers, what is clear is that the administration is no longer working off the pretense that tax reform will seek revenue neutrality. Instead, it looks like Trump and the Republicans are leaning towards pretending that dynamic scoring of tax cuts will suffice for a revenue neutral plan.

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Damn The Deficits, Huge Tax Cuts Ahead!

By Peter Schiff – Re-Blogged From http://www.Silver-Phoenix500.com

Donald Trump has made good on one of his most audacious campaign promises by submitting what he describes as the biggest tax cut in U.S. History. For once, at least, this does not appear to be Trumpian braggadocio. It really may be the mother of all tax cuts. But if passed, what may this bunker buster do to the economy? While I have rarely met a tax cut I didn’t like, this one just may be more likely to send the economy into a downward spiral than it is to send up to orbit.

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Gold-Stock Breakouts Near

By Adam Hamilton – Re-Blogged From http://www.Gold-Eagle.com

The gold-mining stocks’ usual volatility has proven outsized so far this year, spooking investors.  A fast initial surge in a new upleg was soon fully reversed by a sharp major correction, which spawned much bearish sentiment.  That combined with the great distraction from the Trumphoria stock-market rally has left gold stocks unloved and overlooked.  But their outlook is very bullish, and major upside breakouts near.

It’s hard to find bargains in today’s extreme stock markets.  They’ve been radically distorted by the post-election euphoria centered on universal hopes for big tax cuts soon.  Nearly every sector has been bid up to dizzying valuations.  Except gold stocks, which everyone still hates.  They may very well be the last remaining contrarian sector in these crazy markets, and thus a great buying opportunity for smart traders.

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Free-Market Think Tanks Should Pitch Trump Their Best Ideas

By Deroy Murdock – Re-Blogged From National Review

Conservatives can help him craft an innovative reform agenda. Free-marketeers who are in tears about Donald J. Trump’s pending presidential nomination should heed the wisdom of the Beatles: “Take a sad song and make it better.”
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Trump’s policy agenda remains largely unwritten. While he has detailed solutions on immigration, taxes, and health care, Trump has left many issues untouched. This is a problem, but also an opportunity. Conservatives and small-l libertarians who supported Ted Cruz, Marco Rubio, or Scott Walker for president can curse Trump . . . or do something constructive: work with him and his team to develop his platform.

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