Donald Trump Tax Cut Plan Latest: Top 1 Percent To Gain Most, Markets Climbing Higher

Stocks, futures and the U.S. dollar all responded with glee after President Donald Trump said Thursday tax cuts were next on his agenda while describing the potential plan as “phenomenal,” Reuters reported Friday. The report stressed that improved Chinese trade data as well as the rise of the dollar and stock futures, coupled with Trump’s pending tax plan, were all reasons for markets improving.

Dow Jones Industrial futures climbed 34 points, S&P 500 futures also rose 2.95 points and Nasdaq-100 futures jumped 7.25 points, while overall energy and financial stocks led major U.S. indexes to recorded closes Thursday, MarketWatch reported.

Yet, exactly how Trump intends to cut taxes remained unclear.

“We’re going to … lower the overall tax burden on American businesses big-league. That’s coming along very well. We’re way ahead of schedule, I believe. We’re going to be announcing something, I would say, over the next two or three weeks,” Trump said during a meeting at the White House Thursday with airline executives.

Should the new plan be the same as one Trump had previously posted on his official campaign website, then the cuts will likely help those in the top tax bracket, according to MoneyTalks News.

Essentially, the top tax bracket rate would shift from 39.6 percent to 33 percent, a major 6.6 percent cut that figures to spur a market that’s already experiencing record highs.

The Trump plan would reduce taxes overall by at least 0.8 percent in every bracket, but the top one percent of Americans could see their incomes rise by 10.2 percent to 16 percent. There was also the possibility that Trump would eliminate the estate tax.

Former President Ronald Reagan’s tax cut plan halfway through his administration could be the inspiration for Trump’s team, White House senior adviser Kellyanne Conway said in an interview with Fox Business Thursday.

“He’s going to make good on that promise early in his administration,” Conway said. “We’re looking at the 1986 tax cuts by President Reagan, we’re looking at the realities of today’s economy, the crushing unaffordability of everyday life many American families in the White House tell us about, and really taking the yoke off the businesses as well.”