The markets traded up and down today and eventually settled for a small loss. The Dow finished down 28 points on an average amount of trading volume, and closed at 24,726.
The House and Senate have passed the tax bill and it’s been marched up the hill for President Trump to sign. It will be interesting to see how these corporations will use the extra capital going forward. AT&T announced that they will give $1,000 bonuses to 200,000 of their employees once the tax bill takes effect, and they’ve previously said that they would invest an additional $1 billion in the U.S., if tax reform gets passed. An additional piece of interest regarding the bill, nonprofit companies will be hit with a 21% excise tax if they pay a salary of $1 million or more to any of their top five earning employees. This is aimed at keeping nonprofit companies from paying exorbitant salaries to executives in order to maintain their nonprofit status.
Congress now moves on to how they’ll fund the government. They’ll most likely agree to a short term extension to avoid a shutdown on Saturday, and then they’ll start working on a more permanent solution. Likely major topics will be how much funding goes into healthcare, the proportional increases in defense and non-defense spending, disaster relief, as well as funding for the opioid crisis.