The markets rallied today on optimism over the new tax plan. The Dow gained 56 points on heavier trading volume, and closed at 22,340. Oil continues to make gains while gold runs counter to the market.
Instead of seven tax brackets, the new plan looks to feature three tax brackets (12%, 25%, and 35%) with an option to add a fourth tax bracket or possibly increase the highest tax rate. Again, talk of doubling the standard deduction and increasing the child tax credit remains consistent. Still undecided is what additional deductions they will allow, such as deductions for mortgage interest, or 401K contributions, and deductions for state and local tax. In regards to businesses, they are looking to reduce the corporate tax rate to 20%, and 25% for “pass through” businesses which are the LLCs or S-Corps (like your favorite business, Greystone! ).
NAFTA talks continue as the third round of seven has been completed. Officials are saying that progress is being made, but so far only the minor issues have been discussed. The U.S. has recently put taxes on the Canadian Bombardier’s CSeries jets, in order to favor Boeing, much to Canada’s chagrin. And the U.S. will also look to reduce the trade deficit with Mexico. The goal is to have everything completed by the end of the year, which appears to be a lofty goal considering all these heavy items have yet to be discussed.
NCAA basketball is getting a basketball in the face right now. Many top programs are under FBI investigation for illegal bribes and wire transfers. Louisville head coach, Rick Pitino, is shocked that this took place in his program – just like he was shocked that his assistants were soliciting escorts for recruits a couple years back. Maybe he’ll get a Miracle Ear endorsement out of this: “Do you not hear anything your staff is saying…..boy, do we have the product for you!” Pac-12 giant, University of Arizona Wildcats, are also under investigation, and should something stick to head coach Sean Miller, Husky fans could see the reemergence of former UW head coach, Lorenzo Romar, who is currently an assistant coach for the program.