Jim Cramer Says Go With Trump If ‘You Care About Your Paycheck:’ Is Ex-President Really Taxpayer Friendly?
CNBC Mad Money host Jim Cramer has said in the past that Republican presidential candidate Donald Trump is good for one’s investment portfolio. On Monday, the stock picker said a Trump White House could also be good for income earners.
What Happened: “If you’re in the stock market, if you care about your paycheck, you go with Trump,” Cramer said while appearing on Squawk Box. “That’s what you do,” he said.
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Offering the rationale for the view, Cramer told Squawk Box host David Faber that the former president would cut taxes on income. Faber countered him saying his taxes were raised enormously during the previous Trump administration, adding that he lived in a blue-walled state.
Incidentally, in a late-July episode of Mad Money show, which he hosts, Cramer said Vice President Kamala Harris, who is pitched against Trump, is an ideal candidate for investors looking to put their money in tech or international stocks. “If you’re looking to invest in tech, you want a world where tech has a voice in Washington, not slashed vocal chords under Trump or on mute under Biden” and also “If you own many stocks of international companies and you want to vote your portfolio, Harris is more likely to help than hurt,” he said.
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Why It’s Important: The Trump campaign’s economic policy envisages a reduction in federal corporate taxes from the current 21%. It was rumored that his team floated the idea of imposing tariffs in order to make up for lost revenues from lowered taxes.
The gravitation of the so-called billionaire boys or Silicon Valley entrepreneurs and businessmen toward Trump is partly inspired by expectations that he would pursue pro-business policies and advocate less stringent regulations.
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Unlike what Cramer suggested, it isn’t very clear whether Trump will go on to downwardly adjust individual income taxes.
Economist and former Treasury Secretary Larry Summers said the former president’s tariff proposals are the biggest supply shock that will likely push up prices of not just imported goods but all goods that compete with those imported.
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The Republican candidate’s immigration policy would mean greater labor restrictions, potentially causing wage inflation, while scaling back energy subsidies will increase energy costs, he said.
Summers sees increased inflation and inflation expectations, prompting the Fed to act to prove its credibility. “This could easily be a prescription for a 10% mortgage rate,” he added.
After Harris replaced President Joe Biden as the Democratic candidate, Trump has ceded the advantage he had and trails behind the vice president in several nationwide polls.
The SPDR S&P 500 ETF Trust (NYSE:SPY), an exchange-traded fund that tracks the performance of the S&P 500 Index, rose 0.90% to $522.04, according to Benzinga Pro data. The index is up 9.54% for the year despite the sell-off seen in the recent weeks.
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This article Jim Cramer Says Go With Trump If ‘You Care About Your Paycheck:’ Is Ex-President Really Taxpayer Friendly? originally appeared on Benzinga.com
