Market Update | January 2018

Market Update | January 2018

How Tax Reform Should Help The Economy… And You


It has become clear that Corporations and small businesses around the world are taking notice of the significant reduction in tax rates in the United States. Aside from all the political rhetoric, some very positive economic activity is already starting. Here are a few examples.


1. Over 250 large U.S. Corporations have already begun sending their employees a larger paycheck in the form of bonuses. Here are a few:

  • American Airlines – $130 Million

  • AT&T – $200 Million

  • Bank of America – $140 Million

  • Comcast – $100 Million

  • Chrysler/Fiat – $120 Million

  • Fifth Third Bancorp – $130 Million

  • Walmart – $1 BILLION

While some of our elected officials say this is just a drop in the bucket, the fact that over 3 Billion dollars is being put back into the hands of employees in the form of a bonus is huge. It will also have a huge impact on consumer spending and ultimately trickle down to corporate profits and stock prices.


2. Every family, especially those with children under age 18 and those that do not itemize their deductions will also begin to see less tax withheld from their pay starting in February. It is estimated that the average family of 4 will save between $2,000 to $4,000 annually on top of any bonuses that they will receive. This will also have a huge impact on consumer spending, savings and ultimately corporate profits.


3. Corporations and Small Businesses are receiving a significant reduction in their income tax liability. Some is going to bonuses, higher wages and employee benefits. Some may go to Stock Repurchases which will help corporate profits. Some will go to Increased Capital Expenditures as businesses buy more equipment to expand. Some will just add to the companies bottom line profits and be distributed back into the economy in the form of profits, dividends and increased stock prices.


4. Many foreign owned companies are now realizing that the United States is on par with the home country from a tax standpoint. The opportunities to expand into the United States are now becoming more viable and in many cases will offer even greater opportunity for global expansion. While this is just beginning to take effect, I believe that in the next 5 years, this will become a significant boost for the U.S. and world economic outlook. The expansion of jobs, building, infrastructure and disposable income will all have a positive impact on our economy and stock prices.


While our elected officials continue to bicker, complain and get in the way of progress. The business world is taking charge of the new legislation in a very big way to help every American citizen get a little bigger piece of this new pie.


Now if they could only begin working together to actually accomplish what we, the citizen’s of the United States, elected them to do… it would be great.


I believe that most people want stronger, safer borders and immigration policy; better and lower cost health care; better roads, bridges, airports and infrastructure and less racial tension.


It seems like the people of this great country get along pretty well until the politicians begin calling everyone a racist or a bigot in an effort to get re-elected. Maybe they should try to sit down together and learn to play well with others before they start bad mouthing everyone that has an opinion different than their own.


Everyday you meet new people, co-workers, social acquaintances and even family members that you don’t completely agree with. Every day we work together with people of every race, religion and gender. Most of us don’t feel the need… or the desire to call them names, tell them their views are totally wrong or they are a racist.


Yet many of our elected officials do this every day. I challenge you, the next time you run into one of your elected officials, just ask them to stop. Ask them to learn how to listen. Ask them to learn how to work with others, not against them. If they continue to ignore our requests… vote for their opponent next time. Republican, Democrat, Independent, Green party, Purple party or whomever. Let them know it is time to compromise, find common ground and make this very special country… better.


I hope you can see how some of the new Tax Reforms will begin helping you today, and the economy as we move forward.


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:, or 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:

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