Trump's tax plans

[stpioc]

Bond king Bill Gross isn't too impressed:

Gross said the proposals so far from the transition team had shown nothing to benefit the working-class Americans who helped propel Trump to his unexpected victory. "But while the Fox promised jobs and to make America great again, his policies of greater defense and infrastructure spending combined with lower corporate taxes to invigorate the private sector continue to favor capital versus labor, markets versus wages, and is a continuation of the status quo," the letter said.

Gross said such policies, like a lower corporate tax rate, were misguided given that the effective tax rates on average for S&P 500 companies were well below the statutory rate of 35% anyway. He also said the idea of a tax holiday to bring cash back in from overseas would not have the effect that Trump has promised. "The last time such a 'pardon' was put into law in 2004, no noticeable pickup in investment took place," Gross wrote. "Of the $362 billion that earned a 'tax holiday', most went to dividends, corporate bonuses, and stock buybacks."

"Both the Clinton Democrats and almost all Republicans represent the corporate status quo that favors markets versus wages; Wall Street versus Main Street," the letter said. "That's why the American public and indeed global citizens will continually take a wrong turn in their efforts to neuter the establishment and to regain several decades' lost momentum in real wages versus real profits."

Gross, for his part, believes a government-led program to employ Americans such as John F. Kennedy's AmeriCorps or Franklin D. Roosevelt's New Deal employment programs would be a better method of solving Americans ills.

Bill Gross: Donald Trump election US economic 'damaging' - Business Insider