Tax Hikes: The Market Says, “Meh”

But what about those crazy Dems?

There is a propensity on the part of the media to ascribe monolithic tendencies to both parties. When it comes to dropping free money on everyone, this works with Democrats. When it comes to taking money away, well, it is a different story. The Republicans will definitely vote ‘nay’ but most Democrats do not hail from districts where the majority wants to have their taxes raised, not even Alexandria Ocasio-Cortez.

I live in the Kansas 3rd Congressional district. My rep is Sharice Davids, a two-term, Native American, Cornell Law grad, mixed martial arts fighting Democrat. She replaced Republican, Kevin Yoder in 2018. Kansas is a red state but the 3rd district has turned purple. She spends a lot of time on constituent service in her district to keep it that way. Davids, along with other moderate Dems, will write any new tax law because if you lose those (purple) seats, you lose your majority. AOC is in a safe seat. She may have a lot to say about tax policy but her rhetoric will have little effect on the outcome.

My take: Tax increases are coming but the market is not buying them as being draconian. Ergo, the market says ‘meh’. Don’t let the media and pundits scare you out of our secular bull market. 

What  are your thoughts?

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Disclaimer: The information presented here represents my own opinions and does not contain recommendations for any particular investment or securities. I may, from time to time, mention certain ...

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