The stock market had a great run after the election of Donald J. Trump as president. This put egg on the face of many elite commentators who predicted that a Trump victory would be disastrous for the economy.
Indicators of economic optimism also improved, and some business activity indicators improved in response. But lately plans for tax reform have been splintering into competing versions.
Some GOP leaders seem willing to cave on key issues such as whether to cut rates for the highest bracket and whether to delay corporate tax reductions. In response markets have leveled off, and there are some signs that growth is sagging too.
It is imperative that tax cuts be passed now and implemented immediately. Republicans will get no credit from the electorate for bi-partisanship if they sail into the next election with a weak economy on the horizon. It doesn’t need to be fancy. But it needs to be soon.
We’re past the time for rhetoric: we need successful votes and tangible policy shifts, otherwise the famed ‘Trump Trade’ may well be over.