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Republican tax cut.

News

Tax Cuts May Not Be That Great for Stocks

Aaron Levitt Mar 20, 2018


The Republican tax plan could be the biggest story facing investors this year.

The key win for the plan continues to be the lowered rates on corporate taxes and the repatriation of overseas cash. Higher earnings and bigger shareholder rewards – such as dividends and buybacks – await many shareholders. As a result, investors are heralding the plan as a major victory.

But, they may want to hold their applause.

According to a chief strategist at J.P. Morgan, the tax plan may not turn out to be that great for investors. There are several key features and reasons why these lower tax cuts could only be a temporary win. For investors, it’s something to consider given all the hoopla surrounding the tax cuts.

Learn more about taxes and dividend stocks here.

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