Well, Donald Trump will soon be President of the United States. Thank God our advisors do not talk to our clients about politics; we talk to them about economics. And from a domestic economic perspective, that is tax, spend and trading policies, much of which I can presume is coming in 2017.

Individual Taxes
“Imagine your paycheck was 40 percent higher than it currently is. What could you do with 40 percent more wealth? How many jobs and opportunities for others could you create?”—President-elect Trump

Mr. Trump wants to reshape America’s tax system. His plan has just four tax brackets and would limit taxes on all forms of business income to 15 percent, would end the estate tax and would “exclude childcare expenses from taxation.”

His plan will reduce the current number of brackets from seven to four and dramatically streamline the process. The brackets will be 0, 20, 25 and 33 percent.

Tax simplification will be a major feature of his plan. Our current tax code is so burdensome and complex, Mr. Trump claims, that we waste 9 billion hours a year in tax code compliance.

Mr. Trump says his tax plan would lower the top rate from 39.6 percent to 33 percent, and with that zero bracket would have only four brackets, down from the current seven.

Trade
As for trade, which has been a centerpiece of his economic agenda, Mr. Trump reiterated calls for the U.S. to pull out of the Trans-Pacific Partnership trade deal and for NAFTA to be renegotiated. He said he would appoint trade negotiators whose goal will be to “win for America,” and he would apply tariffs on countries that cheat.

Other highlights include a proposed moratorium on all new federal regulations and would “remove bureaucrats who only know how to kill jobs.”

Business Taxes
“Under my plan, no American company will pay more than 15 percent of their business income in taxes. In other words, we’re reducing your taxes from 35 percent to 15 percent.” — President-elect Trump

Mr. Trump, is definitely giving small business a huge, up to a 60 percent tax cut, hoping that investment spending will help to bring more money into the economy, while taking away money from the government.

Consumer and investment spending makes up about 70 percent of our economy or gross domestic product.

Do you believe the Donald Trump Economic Tax Plan is designed to “put more money” into the economic system? High income earners and corporations will get massive tax cuts, designed to get consumers to spend; do you think they will?

If you are a Trump fan, then his economic/political message says our economy is stalling. We need to get it booming. We need to lower individual and corporate taxes to pump more money into the system.

What does that mean to your pocketbook?

For individuals, the top one percent would see their after-tax incomes grow by 5.3 percent or up to 25 percent. Middle class earners, from the 30th to the 70th, will get up to a 15 percent tax cut, while people below the 80th percentile would see little change, with their incomes growing by less than one percent

For Corporations, a huge business tax cut could spur business investment, which could create jobs if the economy is moving and humming and businesses are ready to create more jobs

For international trade, we might be in for a huge mess. Importing from one country more, exporting less to the other. When of course we do not know all of the specifics yet, we know, from a Republican Congress that they would like to see our nation export more.

Bottom line: The Trump plan will put “more money” in high income, middle class earners and corporations’ pocketbooks, not Uncle Sam’s or lower and middle class wage earners. Our country, though this plan “could” accelerate the belief of more of the “haves” and the “have nots,” making it easier for both more private and government-related ” gentrification” and “affordable housing chants.”

Will this economic vision be a boom for America? Yes! The better question is 5-10 years from implementation, what will America’s economy look like after?

Anthony Rivieccio is the founder & the CEO of The Financial Advisors Group, celebrating its 20th yearasafee-only financial planning firm specializing in solving financial problems. Anthony, a recognized financial expert since 1986, has been featured by many national and local media including: Klipingers Personal Finance, The New York Post, News12 The Bronx, Bloomberg News Radio, Bronxnet, The Norwood News, The West Side Manhattan Gazette, Labor Press Magazine, Financial Planning Magazine, WINS 1010 Radio, The Bronx News and The Bronx Chronicle.

For financial assistance or a FREE 2016 Investment Analysis. Anthony can be reached at (347) 575 5045.