Investment: 2017 Outlook

In November, markets were startled and then supported by the election of Donald J Trump as President of the United States. The program that Trump intends to introduce is not widely understood. The President’s budget for 2018 will enact a comprehensive tax reform plan which will provide a US$4.55 trillion stimulus over the President’s four year term.

Donald Trump’s economic plan will reduce the corporate tax rate from 35% to 15% and eliminate most tax breaks. The plan will tax carried interest as ordinary income, impose a one-time deemed repatriation tax on profits held abroad, repeal the estate tax and eliminate the corporate and individual alternative minimum tax.

The Trump plan will also reduce individual tax rates to a simple three tier level of 12%, 25% and 33%. The top level of 33% would reduce from the previous top US level of 39.6%.

Read the full Morgans monthly Investment Watch update.

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DISCLAIMER: The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone.  If expert assistance is required, professional advice should be obtained.