Trump, Taxes and Tweets 2017 – Immigration and Expansion
While many citizens in the United States and around the world, do not like or approve of Donald Trump’s tweeting, comments or presidency, it is hard to argue with the fact that it was a good year from a financial standpoint.
The US stock markets grew from 19% to 28% during 2017 and bonds appreciated from 3% to 9% depending on their type and maturity. World and International stock markets did even better in some areas of the world, especially those that are responsible trading partners and allies of the United States.
The new tax plan that was passed in December will help most Americans, but will have a mixed effect in states that have high property, state and local income taxes. Unfortunately, our state, New York is one of those that the jury is out. Most retirees, small business owners and families with young children will benefit from the new tax laws.
But those with higher incomes, no dependent children, that pay higher state taxes and own a home may receive little or no tax relief. This may cause states that charge higher property and income tax levels to begin looking at how they can restructure their revenue streams and spending to better accommodate the new tax laws.
It always amazes me that some states charge no income taxes and very low property taxes, while others rely so heavily on them to survive. This may be the impetus and wake-up call that forces our elected officials to begin looking at how other states accomplish fiscal responsibility, control government entitlements, Medicaid and develop financial sustainability.
That would be long overdue and a great revelation, but if they don’t, they may be confronted with mass migrations out of their states, which will have additional negative impacts on their revenue.
Many of us in California, Oregon, Minnesota, Iowa, New Jersey, Vermont and New York, the highest taxed states in the nation, will not pick up and leave immediately. However, if our elected officials do nothing over the next few years, many will begin seeking relief elsewhere.
As for other issues that were impacted in 2017, I am in favor of a stronger military, respect for our law enforcement officials, upgrading our crumbling infrastructure, stronger immigration policies and medicaid reform. Our country seemed to have lost focus on taking care of our legal citizens and residents. When illegal immigrants have stronger legal rights, better health care and education opportunities than those of a U.S. Citizen… something is wrong here and it needs to be fixed.
Not surprisingly, many of our highest taxed states are also those that provide sanctuary cities, the highest medicaid and welfare benefits and many other subsidies to non-residents. When you analyze the numbers, it leaves plenty of room for improvements. Maybe this tax reform package will bring those to the surface and expose the waste and fraud that can lead us to lower property and income taxes in the future.
Looking forward to 2018, we have plenty of reasons to expect another good year. The significant reduction of corporate and personal taxes will help businesses and families do more with what they earn. Some of those tax savings will go to buying goods and service, others will go to savings and investments. Both of these areas will help stimulate the economy and increase corporate profits.
But we should be cautious not to overlook that fact that markets do not go straight up. A correction or two along the way would be healthy and expected moving forward. When they will happen is subject to the giant Crystal Ball, but they will happen.
We will continue to monitor market conditions and upgrade our investments and investment themes as needed. Should you have any questions or want to schedule an appointment, please contact us at 716-662-4470.
Keith Maderer has been a Financial, Investment and Tax professional in the Buffalo-Niagara region for over 30 years. He helps individuals and families to Clarify their needs and goals, Solve their problems, and Simplify their life to avoid the common pitfalls that get in the way of enjoying life and retirement.
He is an author, an entertaining and humorous speaker that enjoys captivating audiences with stories, anecdotes, and messages that inspire and motivate others to achieve their goals.
He has been married for over 30 years and has 5 adult children which contributes to his great sense of humor. For more information please visit: http://SFTAweb.com, or http://KeithMaderer.com or visit his Amazon Author Page.
Chelsea Maderer is a Financial, Investment and Tax Advisor in the Buffalo-WNY region. She helps individuals and families to Clarify their needs and goals, Solve their problems, and Simplify their life to avoid the common mistakes that get in the way of enjoying life and retirement.
For more information please visit: http://SFTAweb.com.
Recent Blog Posts
Most importantly, whether you’re a family member or are the one dealing with Alzheimer’s directly, don’t forget to give yourself a break. Some days may seem incredibly challenging while other days may be easy. It is normal to show emotions and vulnerability when going through challenging times. You’re only human.
It is crucial to have the necessary important documents in place as we age. It becomes even more important if you are diagnosed with Alzheimer’s or other neurological condition.
Life Insurance: Who needs it? How much? When should you get it? What type of Policy? This is just the beginning of the questions. Educating
Alzheimer’s and Dementia are terrible diseases that can rob individuals of their independence, mobility and memories. Tell your family what your wishes are with respect to the three F’s: Funeral, Finances and Family.
Family History Of Alzheirmer?5 Things To Consider… Before It’s Too LatePart 2 By: Keith Maderer and Chelsea Maderer Alzheimer’s and Dementia are terrible diseases that