Congress returns to Washington in June with a long to-do list that includes funding the government, raising the country’s borrowing ceiling, reforming Obamacare, and reducing taxes. The actions Congress takes (or fails to take) could affect the markets through the summer and fall. This white paper considers what Congress is likely to accomplish and how the markets are likely to react.
For the first time in thirty years, enactment of comprehensive tax reform legislation is a realistic possibility. President Trump has made tax reform a central goal of his new administration, designating simplification and lower tax rates as key drivers of economic growth. In this effort Trump enjoys the vigorous support of the Republican leadership in Congress. This white paper discusses the proposals for tax reform, the barriers that must be overcome to permit its enactment, and the likely tax changes investors will encounter when all is said and done in 2017.
President Trump's initiatives promise to have far ranging effects on taxes, health care, sector regulation, government spending, and the country's fiscal situation. This paper lays out the initiatives we expect Trump to pursue during his first year in office. We consider the extent to which Trump can expect support from the Republican-led Congress and the impediments that nonetheless may stand in the way. And, finally, we discuss how the new administration's programs are likely to affect the economy, industry sectors, tax planning, investments, and the markets.
The Department of Labor has issued its much-anticipated final rules that impose a fiduciary duty on financial advisors to the extent they recommend investments for their clients’ IRA and other qualified accounts. We believe that, from the industry’s perspective, these final rules represent a significant improvement over the proposed rules DOL issued last year, although some fundamental concerns remain to be worked out. This paper reviews the major changes in the final rules and discusses the likely effects the rules will have on financial advisers and their way of doing business.
Tax rates imposed on upper income taxpayers are now the highest they have been in almost four decades. And taxes are likely only to increase as Congress looks for ways to defray increased government spending on entitlements due an aging population, subsidies under the Affordable Care Act, increased overseas military operations, and new social programs to help the middle class. This update of our most popular white paper discusses recent and likely future tax changes, and what investors can do now to minimize the taxes imposed on their investment income.