Pushback Over Pushing Out Tax Reform

After months of speculation over tax reform, we now have competing proposals on how to reduce corporate taxes and put more capital in the hands of individual taxpayers. From an investing perspective, there has been much buildup over what this could mean for both the U.S. economy as well as corporate profits and earnings per share as early as 2018. 

As I shared in this week's Stocks Under $10 Weekly Roundup, differences between the competing House and Senate tax reform plans have brought a new layer of uncertainty to the market, especially for small-cap stocks, as evidenced by the retreat in major market indices over the last several days. The businesses underneath small-cap companies tend to be primarily U.S.-based, which means changes to tax reform relative to what was expected are bound to cause investors to re-bake the cake that is 2018 forecasts, potentially to the downside. Moreover, potential aspects of tax reform proposals could make it more difficult for small-cap companies to retain or attract talent needed to drive their businesses. ...945 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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