Fisher Investments' founder and Executive Chairman Ken Fisher's latest article, published in this morning's USA Today, covers what is quietly the most important aspect of a potential Trump tax cut. Here is a highlight:
"People get hung up on details, such as corporate tax rates. But what matters most is defining property rights between government and citizens. That's what the tax code does. What does the government get? What do people get to keep? What do we get to do with what we keep? Where do we draw the line, and is that line bright and enduring? Having confidence that property rights won't change enables businesses to make long-term capital expenditures - new plants, new research and development, new equipment, new software. If we drop the corporate tax rate to 15%, fine, but if everyone believes it will rise again in 2021 or 2025, we'll get business transactions between now and then that help for the next four years but don't change the world."
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