13/10/2017-10

Tax reform deficit widening dollar rise

US President Trump’s tax reform program was finally released, the company’s profits tax and personal income tax, but did not mention what method to fill the tax losses. I believe that the tax reform will make the US deficit seriously expanded, but also to start the printing press India silver paper day, is bound to make the dollar exchange rate fell again, investors in order to hedge, it is likely to increase holdings of property, resulting in property prices and then rise.

The tax reform proposal proposed a substantial reduction of corporate tax from the current 35% to 20%, compared to Trump said before the 15% high. The personal income tax rate is reduced from the current 7 to 3, ie 12%, 25% and 35% respectively. The highest tax rate is 39.6% lower than the current one.

US Department of Commerce said that after the tax reform, the federal government’s tax revenue will increase by about 3 trillion US dollars, gross domestic product is expected to increase by 1 percentage point. But the market estimates that the tax reform in the United States in 10 years to reduce taxes 5.8 trillion US dollars, excluding economic activity to improve the increase in income of about 3.6 trillion US dollars, the next 10 years the fiscal deficit will increase about 2.2 trillion US dollars.

The United States is currently charged a high tax rate, the government bonds are still more than 20 trillion US dollars. After the tax reform, the tax cuts, is likely to make the debt further pushed up.

Investors insured funds into Hong Kong property market

Although the US corporate profits after tax cuts should be increased, but if all the “US priority" to reduce the import of cheap foreign goods, and the production of pure US goods, the United States and the face of labor shortages, US goods must be expensive, at any time. When the US consumer market business opportunities are not increased by the increase, the economy worse, the government to reduce revenue to calculate the income of the abacus may not be ringing. Tax cuts may be as much as a wound on the body, so that blood loss faster. To the first aid, only re-apply the technical silver paper, but the dollar accelerated depreciation. The current US government and the national total debt rose to 67.85 trillion US dollars, plus new debt up, the dollar is more flooding, capital self-protection, continue to flow into Hong Kong and other big cities of the property market, what surprising!