Tax cuts, whether corporate, personal or capital gains, have no discernible affect on stock prices; so, the USA Today analysis shows in the article below:
“Since 1927, we’ve cut corporate taxes 10 times. The following year, US have risen six times, 60% of instances, averaging 11.3% increases per year.
“We have also hiked these taxes 13 times. Stocks rose the next year nine times, 69% of instances, averaging 12.5% annually.
”Personal income taxes… We’ve had 15 cuts. Stocks rose the next 10 times–66% of those years gaining 8% on average. Return’s after 13 comparable tax hikes also rose, gaining 10 times or 77% of those years, and averaging 15.7% annually.
“…[C]apital gains …. Congress has cut capital gains taxes six times. Stocks rose the next year five times averaging … 19.1%. Stocks also rose after all but one of the nine capital gains hikes [89%], averaging 12.1%.”
Trump/Republicans hype the cuts for two reasons (1) to put money the pockets of corporations and the most wealthy and (2) to put the burden of paying for our Democracy on the middle class.
Source:
USA Today, October 9, 2017, Ken Fisher