Earlier this week the House approved President Trump’s tax reform bill, which includes $4.5 trillion in tax cuts over the next decade. On this week’s episode of Capitol Gains, anchor Madison Mills, Washington Correspondent Ben Werschkul, and Senior Columnist Rick Newman talk to former Republican House Ways and Means Committee Chair Kevin Brady about Trump’s tax cut bill and what investors can expect from it.
“I think the key is going to be how they resolve over the next month, how reconciliation will look. If you noticed, in the House bill, they really created a band, a tie between spending reductions and how much can be spent to extend the tax cuts,” Brady explains. “It’s sort of like two rock climbers tethered together and in this case, the higher that the spending reductions can climb, the higher the tax base can climb. That is going to dictate how much of the tax reform is made permanent.”
Brady also advises to pay attention less to the President’s posts on social media and focus more on his campaign promises. “There is going to be meaningful action on each of those issues or most of those issues within this tax bill.”
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Capitol Gains is Yahoo Finance’s unique look at how US government policy will impact your bottom line long after the Presidential election polls have closed.
This post was written by Lauren Pokedoff.