TRUMP’S TAX CUTS AND THEIR IMPACT ON THE SMALL CAP MARKETS

Whether “trickle-down economics” leads to higher income growth for the population as a whole continues to be is the subject of a debate. This debate will only become more intense if President  Trump successfully enacts the tax cuts he proposed during his campaign. Speculation is that that the top corporate tax income rate will decrease to 15%. One need only look to the example of Ireland, which experienced a business boom in the European Union following enactment of a similar tax cut.

In addition, a tax cut in the personal income tax rate could free up investment in startups and growing businesses. United States stock market is the largest and most liquid market in the world. It is the mother lode of all stock markets. The concept of bringing many investors together for a commercial venture has been wildly successful ever since the times of the British East India Tea Company.

Going public provides rich and even middle-class people to participate in the American dream. What entrepreneur has not dreamed of having the success of a Mark Zuckerberg, Steve Jobs, Bill Gates, or Jeff Bezos? The US stock market is the greatest generator of wealth and economic advancement in world history.

The greater the amount of capital is freed up by tax cuts, the more likely it is that the number of IPOs will increase. Therefore, it seems very likely that 2017 will mark the beginning of a boom in capital raising.