DarkRange55
Enlightened
- Oct 15, 2023
- 1,456
Trump may be good for the stock market (at least in the short-term) - the stock market is not synonymous with the economy. Its a metric that industry focused people like Trump often use.
Previously Trump implemented massive tax cuts. The Tax Cuts and Jobs Act helped corporate profits for large publicly traded profits, C-corporations and passthrough entities. Most small businesses are sole proprietorships, partnerships, or an S-corporation. All of these different tax structures are passthrough entities. The corporation is not taxed at the business level, it's taxed at the individual level. There's a specific deduction called the Qualified Business Income Deduction (QBI) which an additional 20% deduction in general on your business profits for passthrough entities. Thats huge. So the Tax Cuts and Jobs Act doubled the standard deduction, it got rid of the exemption and it implemented the Qualified Business Income Deduction. So for example if you make $20,000 in profit, you have an additional $4,000 deduction before you arrive at taxable income on your individual tax return in general. (Talk to a tax expert for your individual situation). This is for passthrough entities. The tax rate for C corporations was slashed. So they did the same thing for passthrough entities.
The Tax Cuts and Jobs Act is about to expire, I think it's in 2027. If this expires, taxes for small businesses are about to vertical line up.
The 2017 tax law (Tax Cuts and Jobs Act, or TCJA) permitted a 100 percent bonus depreciation deduction for assets with useful lives of 20 years or less, so assets classes with over 20 years of deprecation would not normally be permitted to fully expense the cost. There maybe also other factors that limit the bonus deprecation, so it all depends on the area, the type of improvement(remodel or upgrade) and they type of business the building is being used for.
Trump doesn't care about deficits. The US government is spending money like a drunken sailor. There is mandatory spending and discretionary spending. The US spends more than they collect in tax revenue. The difference every year is the deficit and deficit adds on to the debt. And the national debt is money owed to people around the world but mostly Americans. Some is owed to China but Japan is the single largest foreign holder. The American government's institutions (programs like social security buy bonds) are the single largest followed by US holders of bonds. When there is high interest rates, that generally makes funding the government even more expensive. But when rates are low it makes the debt pretty affordable. I think interest rates will come down. On top of that, the US can continue to run deficits for a long time. Look at Japan, they have a huge debt-to-GDP ratio and they're still doing fine. Imagine how much debt-to-GDP the United States could do. Probably a lot.
When you cut taxes and you don't cut the government, that results in deficits but it juices the economy because the government is spending and people have more money in their pockets. Thats great, at least temporarily. Who knows what the actual limit of the government is pr where it's gonna be? It's probably a lot higher than people think. But in the short term, if Trump gets reelected, he will probably try to renew the Tax Cuts and Jobs Act or try to make it permanent. That will be a huge boon both for businesses and corporate profits which will make stocks rise since they're paying lower corporate taxes.
When Trump got elected, gold was down and oil broke $49 a barrel. After one year the markets, depending how you want to measure it, was up 20-25% since Trump got elected on the 8th of November. The guys that benefited were the guys that drive the indices. He (arguably) helped create $3 trillion of market cap on just the NYSE but most people haven't benefited because 70-90% depending on how you want to calculate was big money. Rockafeller, Trump, Pena, ect. And so the average joe didn't benefit. Part of that is the algorithms because its the fast money thats making all the big money. Although hedge funds have fallen out of favor the last couple of years because their returns haven't been the same as even the indices.
His biggest legislative accomplishment was a massive tax cut in which 83% of the benefits went to the top 1%. At least the first year and 20.5% the next year (2018) according to an estimates from a study by the nonpartisan Tax Policy Center.
https://www.taxpolicycenter.org/pub...nference-agreement-tax-cuts-and-jobs-act/full
The bridges are all 40-50-60 years past their prime, the roads are 50-60-70 years past their prime, the infrastructure for pipelines are past their prime. To rebuild all this he was supposedly going to spend three trillion dollars which is not a coincidence that he added three trillion to the stock market because he was supposed to add infrastructure. So all the stocks like Caterpillar, AT&T, Boeing, ect went up 50-20-25% since he got elected. Because the big money, the smart thought that those companies were gonna get all the contracts. Especially aerospace. Not just because he cut the cost of Air Force One down $700 million or whatever he did. But because he was claiming to be bringing the United States military back to what is was under Reagan 30 years ago. I think we get involved in too much shit outside of the country. But I think a strong country that nobody is gonna screw with us.
Both Trump and Biden's infrastructure plans never came to fruition. No surprise…
I really liked the infrastructure rhetoric and he did try multiple times but the infrastructure plan never went anywhere. He only funded 1% of the promised $1.5T in the nation's infrastructure spending.
www.bloomberg.com
I will need a second dedicated thread for his "Trumpenomics"
www.zerohedge.com
Previously Trump implemented massive tax cuts. The Tax Cuts and Jobs Act helped corporate profits for large publicly traded profits, C-corporations and passthrough entities. Most small businesses are sole proprietorships, partnerships, or an S-corporation. All of these different tax structures are passthrough entities. The corporation is not taxed at the business level, it's taxed at the individual level. There's a specific deduction called the Qualified Business Income Deduction (QBI) which an additional 20% deduction in general on your business profits for passthrough entities. Thats huge. So the Tax Cuts and Jobs Act doubled the standard deduction, it got rid of the exemption and it implemented the Qualified Business Income Deduction. So for example if you make $20,000 in profit, you have an additional $4,000 deduction before you arrive at taxable income on your individual tax return in general. (Talk to a tax expert for your individual situation). This is for passthrough entities. The tax rate for C corporations was slashed. So they did the same thing for passthrough entities.
The Tax Cuts and Jobs Act is about to expire, I think it's in 2027. If this expires, taxes for small businesses are about to vertical line up.
The 2017 tax law (Tax Cuts and Jobs Act, or TCJA) permitted a 100 percent bonus depreciation deduction for assets with useful lives of 20 years or less, so assets classes with over 20 years of deprecation would not normally be permitted to fully expense the cost. There maybe also other factors that limit the bonus deprecation, so it all depends on the area, the type of improvement(remodel or upgrade) and they type of business the building is being used for.
Trump doesn't care about deficits. The US government is spending money like a drunken sailor. There is mandatory spending and discretionary spending. The US spends more than they collect in tax revenue. The difference every year is the deficit and deficit adds on to the debt. And the national debt is money owed to people around the world but mostly Americans. Some is owed to China but Japan is the single largest foreign holder. The American government's institutions (programs like social security buy bonds) are the single largest followed by US holders of bonds. When there is high interest rates, that generally makes funding the government even more expensive. But when rates are low it makes the debt pretty affordable. I think interest rates will come down. On top of that, the US can continue to run deficits for a long time. Look at Japan, they have a huge debt-to-GDP ratio and they're still doing fine. Imagine how much debt-to-GDP the United States could do. Probably a lot.
When you cut taxes and you don't cut the government, that results in deficits but it juices the economy because the government is spending and people have more money in their pockets. Thats great, at least temporarily. Who knows what the actual limit of the government is pr where it's gonna be? It's probably a lot higher than people think. But in the short term, if Trump gets reelected, he will probably try to renew the Tax Cuts and Jobs Act or try to make it permanent. That will be a huge boon both for businesses and corporate profits which will make stocks rise since they're paying lower corporate taxes.
When Trump got elected, gold was down and oil broke $49 a barrel. After one year the markets, depending how you want to measure it, was up 20-25% since Trump got elected on the 8th of November. The guys that benefited were the guys that drive the indices. He (arguably) helped create $3 trillion of market cap on just the NYSE but most people haven't benefited because 70-90% depending on how you want to calculate was big money. Rockafeller, Trump, Pena, ect. And so the average joe didn't benefit. Part of that is the algorithms because its the fast money thats making all the big money. Although hedge funds have fallen out of favor the last couple of years because their returns haven't been the same as even the indices.
His biggest legislative accomplishment was a massive tax cut in which 83% of the benefits went to the top 1%. At least the first year and 20.5% the next year (2018) according to an estimates from a study by the nonpartisan Tax Policy Center.
https://www.taxpolicycenter.org/pub...nference-agreement-tax-cuts-and-jobs-act/full
The bridges are all 40-50-60 years past their prime, the roads are 50-60-70 years past their prime, the infrastructure for pipelines are past their prime. To rebuild all this he was supposedly going to spend three trillion dollars which is not a coincidence that he added three trillion to the stock market because he was supposed to add infrastructure. So all the stocks like Caterpillar, AT&T, Boeing, ect went up 50-20-25% since he got elected. Because the big money, the smart thought that those companies were gonna get all the contracts. Especially aerospace. Not just because he cut the cost of Air Force One down $700 million or whatever he did. But because he was claiming to be bringing the United States military back to what is was under Reagan 30 years ago. I think we get involved in too much shit outside of the country. But I think a strong country that nobody is gonna screw with us.
Both Trump and Biden's infrastructure plans never came to fruition. No surprise…
I really liked the infrastructure rhetoric and he did try multiple times but the infrastructure plan never went anywhere. He only funded 1% of the promised $1.5T in the nation's infrastructure spending.
How Trump's $1 Trillion Infrastructure Pledge Added Up
The “builder president” launched several “Infrastructure Weeks.” But when federal dollars never arrived, states and cities rallied to make progress where they could.
www.bloomberg.com
Trump “$1.5 Trillion” Infrastructure Plan Is a Mirage | Center on Budget and Policy Priorities
Administration officials claim that the President’s new infrastructure plan will support $1.5 trillion in infrastructure investment, but his 2019 budget reveals that that number’s a mirage: the...
www.cbpp.org
I will need a second dedicated thread for his "Trumpenomics"
Trump Reveals Key Pillars Of "Trumponomics": Low Taxes, Sky High Tariffs, Powell Not Fired, Treasury Secretary Dimon And Much More | ZeroHedge
ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero
www.zerohedge.com
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