Ben Carlson, Columnist

How Markets Respond to Tax Reform

The big question is whether lower rates will spur companies to invest more money in people, plants, equipment, or research and development.

April 26, 2017 at 11:00 AM UTC

By Ben Carlson

Ben Carlson is director of institutional asset management at Ritholtz Wealth Management. He is the author of "Organizational Alpha: How to Add Value in Institutional Asset Management."

Due for a change?
Photographer: Daniel Acker/Bloomberg

Provide news feedback or report an error

Site feedback:

Take our Survey

This article is for subscribers only.

President Donald Trump and his staff have promised a “big announcement” this week on tax reform and an overhaul of the code. Based on Trump’s public pronouncements, most people assume this means lower taxes for most individuals and corporations. The president tweeted: “Big TAX REFORM AND TAX REDUCTION will be announced next Wednesday.”

Those in the markets hope that lower corporate and individual tax rates will spur more spending from consumers and more investment from businesses.