Wednesday was a big day for the United States. It was the day that the Donald Trump tax plan, or at least a brief overview of what the Trump administration plans to accomplish, was released. The goal of the tax plan is ultimately to stimulate growth in the United States economy. While the Dow started to soar at the beginning of the announcement, it quickly fell from highs before bouncing back up again. Today, we’ll talk about the Trump tax plan, why the Dow wasn’t sure how to react, and what binary options traders should be watching for ahead.

The Trump Tax Plan

As mentioned above, the Donald Trump tax plan for the year 2017 was released today. At 1:30 eastern time, a conference was held to discuss the plan. The plan was a relatively simple one. So simple in fact, that the briefing associated with the plan that was handed to the attending audience was only one page long. Here are the key points to the plan…

  • Business Taxes – Business taxes are being reduced dramatically. In fact, the Trump plan includes a flat rate business tax of 15% no matter the size of the business. The plan is also designed to make it cheaper for businesses to repatriate funds, hopefully driving trillions of dollars back into the United States economy.
  • Investing – In the conference, there wasn’t much offered with regard to taxes associated with investing. However, it was mentioned that the plan aims to reduce taxes on investment income as this income is there to spur economic growth.
  • Personal Taxes – Finally, the Trump tax plan aims at simplifying the personal tax process. In particular, there will only be 3 tax brackets. Those brackets include a 10% bracket, a 25% bracket, and a 35% bracket. Also, personal tax write offs are largely going to go away, with the exemption tax write offs associated with home ownership, child care, and charitable giving.

    • Why The Dow Jones Industrial Average Didn’t Know How To React

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