After the failure of the health care bill, President Trump’s administration is now focused on taxes. There are members of Congress that are concerned with spending portion and the tax cuts at the same time. Creighton University Economist Ernie Goss explains this is nothing to be overly concerned about.
Goss says, “Repatriation of earnings is a painless cut in taxes. There is about $2.6-trillion abroad that is untaxed right now and the companies are not bringing it back here to be taxed at 35% so we could cut that, a temporary tax cut in 2017 and bring back a significant amount of money for the federal treasury. It would almost be a painless change.”
The stock market took a slide for eight days before a rebound on Tuesday and that is making investors uneasy. Goss says a lot depends on the corporate tax reform. That will impact both individuals and corporations. He says, “If Congress and the president fail to get that through, I think we will move sideways or down for 2017. That has been baked in, at least a portion of that, so we really need that right now.”
When it comes to the local level, Goss still predicts a down year for the agricultural sector but that will turn around.