Trump mentions taxes and financial markets pop the champagne corks – What could go wrong?

In a meeting with Airline officials Trumps talks taxes

During a meeting with airline officials Trump spoke about taxes.

“TRUMP TO ANNOUNCE “SOMETHING” ON TAXES IN 2-3 WEEKS”

…cried the news wires. Markets then went potty.

The currency pair USDJPY (a proxy for the US economy) jumped nearly 100 points from 112.25 to 113.20. US government bonds jumped in yields (another proxy for a bullish view of the economy), US stock markets hit new record highs.

Any leader talking tax cuts gets financial markets in a tizzy. One line from Trump and the financial world now expects boom times for the US economy.

How wrong might they be?

What was lost among the headlines was another comment on taxes, this time referring directly to the airline industry:

“I don’t like aviation fees and taxes” said Trump

That’s hardly a screaming message that tax regimes across America are soon to be targeted by Trump. The original comment might also have just been in the context of talking about airlines.

Anyway, taxes are on Trump’s agenda but he’ll need to do more than put his name on an executive order. This is one big area that Congress will be very much involved in.

I guess we’ll have to wait “2-3 weeks” to find out 😉

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