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Category: Money

Investors Care Most About Bush Tax Cuts

Written on December 06, 2010 by Japhet Writ

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"There aren't a whole lot of catalysts that will push stocks materially higher from here, but one thing that could serve as a real positive is if we see Congress extend all the tax rates." ---Dorsey Farr, French Wolf & Farr co-founder.

The additional 39,000 jobs last November are fewer than what the economists are hoping for. The employment rate also rose to 9.8%, a proof that the current is still weak. However, stock are more focused on Washington policies such as the Bush Tax Cuts.

Investors are hoping that the current tax rates for all Americans will be extended. According to the French Wolf & Farr co-founder, Dorsey Farr, the stocks will be pushed materially higher if the Congress extends all the tax rates. The current structure of the will expire by the end of the year. And when no is approved by that time, everyone’s income and investment levy will spike back up.

The want to extend the current rate for all the taxpayers, while appeal to make it effective for the 98% of working Americans. As of the moment, the two parties are negotiating about this. As said by Michael Sheldon, chief market strategist at RBC Wealth Management:

“The report is likely to put even more pressure on Congress to get its act together and find a solution to help produce better job growth in the months ahead.”

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