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5 Divident Stocks T0 Own Forever
The Trump Tax Plan is the Harbinger of Economic Collapse Lombardi Letter 2017-09-28 12:04:01 economic collapse u.s. economy stock market crash tax plan obamacare corporate taxes Trump financial collapse The stock market and U.S. economy are riding high, expecting Trump's tax plan to pass. But it's too vague and could backfire, causing economic collapse. 2017,News,U.S. Economy

The Trump Tax Plan is the Harbinger of Economic Collapse

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Tax Plan

Whether It Passes or Not, the Trump Tax Plan Has All the Power to Cause Economic Collapse

It’s truly a wonder how the markets haven’t crashed yet. All the conditions exist for the Dow Jones taking a major turn for the worst, given that the signs of a coming economic collapse are everywhere. By now, you must be wondering which planet I’m living on. After all, the stock market is flying. It has hit a slight bump on the path to the next record, remaining around 22,300 points. Still, it remains above 22,000 points!

So, what are the market bears seeing that the bulls are not? Quite simply, there is a vacuum of leadership at the helm of the United States. Trump’s big plans to boost the U.S. economy are going to run into major obstacles. Hints of this are all around us and one is Trump’s Achilles Heel: Obamacare. Indeed, there was yet another defeat for Donald Trump and the Republican majority in Congress over Obamacare.


5 Divident Stocks T0 Own Forever

Trump seems bent on a personal vengeance to defeat President Obama’s healthcare plan. This is distracting him from the real threats to the United States like the national debt and the possibility of a debilitating financial crisis at any moment. That’s why the potential for economic collapse has become so strong. Nevertheless, the plan to scrap Obamacare—for the third time—was once again defeated by a Republican vote. What it suggests is that Republicans, not only Democrats, have a bone to pick with Trump.

In other words, as Trump approaches the first anniversary of his victorious run to the White House, he has precious little to show. Wall Street might be setting constant records, but how many Americans are benefiting from this? Still bruised from his obsession with Obamacare, Trump and Congress want to push through Trump’s tax plan.

Houdini Himself Would Not Be Able to Get Out of This Mess

Even if Trump became Houdini, he would not be able to escape the fact that without money, the government can’t rule. The tax plan, more than improving the U.S. economy, has more chances of prompting boosting debt in a huge way. So how can you expect the politically inexperienced Trump to come to terms with the monumental fiscal and economic challenges of his tax plan? The effects appear clear enough.

  1. Once investors realize the plan is impossible, they will release their stock holdings, moving to gold perhaps as the traditional haven.
  2. The coming market crash will be more than a correction. It will be a historic crash to rival 2008 or even 1929, causing a thundering economic collapse.

Far from it passing without a hitch, many Americans should be concerned. Obamacare suggests that Trump has not managed to gain more supporters, from either party, in Congress. Rejecting or heavily modifying Trump’s tax plan will serve as the pin that bursts the current stock market bubble. Everything is riding on corporate taxes being halved (or better) and attracting trillions of dollars stashed abroad back to the United States.

As for the famous Reagan tax cut of 1981, there was a reason it passed smoothly. It went to the House, not expecting to be passed because of a fragile GOP coalition. But, given sympathy with Reagan after suffering an assassination attempt, it passed. Until then, the Democratic majority fought tooth and nail throughout the legislative process. The Trump tax plan is more ambitious and seasoned politicians with a concept of budget and debt may also have doubts.

Still, let’s say the bill passes. The corporate tax rate will go down to 20%. Personal income taxes will be simplified and reduced. Incentives for investment and repatriation of foreign profits will come into effect. All of that is commendable. It’s great and should be adopted by all governments. The problem is more about how to adopt it. Trump is leading the U.S. down a rather dark alley here, one which ends at economic collapse.

Such a radical tax plan needs to address a few basic details. These details remain occult; thus, the outcome of the reform remains uncertain. Investors have welcomed the news in its general scope, but they have no clue. When they realize that the White House has no clue as well, those same bullish investors are going to pull the plug on Wall Street, causing a major stock market crash.

A large reform of taxes has not occurred since 1986. This tax plan is far more ambitious in scope and it in no way addresses how the United States system will survive the sudden loss of income that taxes provide, let alone allow Trump to carry out his infrastructure renovation plans. Congress just approved an almost $700.0-billion budget. International tensions are higher than when Trump entered the White House, promising to avoid wars. Healthcare reforms aren’t passing. Yet, somehow, taxes can be dramatically lowered…not yet and not in the United States.

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