Trump's Tax Plan Roll out Tomorrow

[HawgWild]

How do you think the market's going to react tomorrow? I'm thinking that the market may have already priced in the best case scenario and may be a bit disappointed with the level of specifics. What's your thinking?

[ricepig]

Buy the rumor, sell the fact. If and when it passes, it should help the economy.

[ricepig]

Of course, I don't like the removal of allowing deductions for state and local taxes, but the devil will be in the details.

[HawgWild]

What are you hearing about the Capital Gains rate? Medical deduction?

[Vantage 8 dude]

Buy the rumor, sell the fact. If and when it passes, it should help the economy.

I totally agree that even IF the proposal(s) pass, the short term "pop" may be a little extended. Now if the corporate tax rates managed to get lowered then no doubt this will lend itself to a longer, more sustainable advance. The market will begin to parse through the various balance sheets and income statements and determine which specific industries and companies will realize the greatest benefit of such. The PE multiple worries that many have expressed as far as current valuations would be reanalyzed and adjusted accordingly.

[ricepig]

What are you hearing about the Capital Gains rate? Medical deduction?

Of course, I'm very interested in the estate tax repeal, here's the other's.

http://www.bizjournals.com/phoenix/news/2017/04/26/trump-tax-cuts-15-business-rate-personal-income.html

[HawgWild]

I'm reading words like the plan "may include" and "may remove". Where are the specifics? Are they not in the plan? Who decides which current deductions are in or out? Of course there are some specifics: three tax rates (but not where the cut off is for each level), 15% corporate level, "wants to repeal estate taxes".

[ricepig]

I'm reading words like the plan "may include" and "may remove". Where are the specifics? Are they not in the plan? Who decides which current deductions are in or out? Of course there are some specifics: three tax rates (but not where the cut off is for each level), 15% corporate level, "wants to repeal estate taxes".

These are just the starting points, there's no sense in tying yourself to a specific number when it's going to change, anyway.

[BigBrandonAllenFan]

Of course, I don't like the removal of allowing deductions for state and local taxes, but the devil will be in the details.

I think the larger majority of people will benefit from the doubling increase in the standard deduction over the itemized deductions.  I know I will.

[ricepig]

I think the larger majority of people will benefit from the doubling increase in the standard deduction over the itemized deductions.  I know I will.

I haven't really studied it, those who live in high state income tax states aren't happy, for sure.

[hog.goblin]

Of course, I don't like the removal of allowing deductions for state and local taxes, but the devil will be in the details.

Just move to TX or FL. Or South Dakota!  There are several others of course but not many rice farmers want to live in Washington, Alaska, Wyoming, or Nevada.

[onebadrubi]

Just move to TX or FL. Or South Dakota!  There are several others of course but not many rice farmers want to live in Washington, Alaska, Wyoming, or Nevada.

Tennessee too, correct?

[hog.goblin]

Tennessee too, correct?

Not really, they tax investment income and most business income.

[BigBrandonAllenFan]

There are several others of course but not many rice farmers want to live in Washington, Alaska, Wyoming, or Nevada.

What about Viet Nam or Cambodia  They grow a lot of rice there.   

[BigBrandonAllenFan]

I haven't really studied it, those who live in high state income tax states aren't happy, for sure.

I can see that for sure. 

But I think the whole idea of the revisions is geared to increasing the state coffers so to work to minimize federal involvement in state finances and affairs.

[hog.goblin]

What about Viet Nam or Cambodia  They grow a lot of rice there.   

Cheaper labor too

[hog.goblin]

I can see that for sure. 

But I think the whole idea of the revisions is geared to increasing the state coffers so to work to minimize federal involvement in state finances and affairs.

Instead it's going to push even more high income folks away from CA and NY and into other states, which helps the destination states but hurts already struggling CA and NY

[ricepig]

Cheaper labor too

What's the horsepower on a water buffalo? My air seeder needs at least 250hp......

[hog.goblin]

What's the horsepower on a water buffalo? My air seeder needs at least 250hp......

Something about that question reminded me of the question "what's the average airspeed velocity of an unladen swallow?"

[HawgWild]

Of course, I'm very interested in the estate tax repeal, here's the other's.

FWIW, the Estate Tax remains in the budget the White House sent over to Congress. See page 27. https://www.whitehouse.gov/sites/whitehouse.gov/files/omb/budget/fy2018/budget.pdf

[ricepig]

FWIW, the Estate Tax remains in the budget the White House sent over to Congress. See page 27. https://www.whitehouse.gov/sites/whitehouse.gov/files/omb/budget/fy2018/budget.pdf

Didn't expect it to be omitted.