Tuesday, October 31, 2017 by Martin Mavis
If Trump manages to get tax reform signed into law, it could delay the impending market crash for years. But passage of real reform is by no means certain. Be cautious.
Podcast Transcript: “I have a stock market and financial update for you. As you know, the market has been well skyrocketing under President Trump – just going to new highs. We all know it’s in a bubble of sorts, however I have some new information. This bubble could continue to grow if Trump manages to get the tax reform package passed any time in the near future. It could be the end of this year, could be early 2018… Apparently Senate Leader Mitch McConnell and President Trump are now at least pretending to work together to get this passed. If this passes, it has a provision called repatriation of offshore money. This repatriation is supposedly going to allow companies to bring in all their offshore money by paying just a 10% one-time fee. There are trillions of dollars offshore through companies like Apple, Google, Facebook and a bunch of others. That’s where they’ve stashed all their profits. They actually book the profits in countries like Ireland, that have very low taxes for example, and they set up these very complex multi-nation tax structures that result in them paying virtually no actual tax – maybe three or four percent. But all that money has to stay offshore. Well, if Trump manages to get this repatriation provision signed into law, the market could go up for a long time. In other words, it might cancel the crash that is otherwise looming…” Listen to the full podcast below: