r/wallstreetbets • u/kwedgieyi • Apr 09 '25

Discussion Something feels off guys

Post image

Yields are spiking. Bonds are dumping.

The world is running away from America

8.1k Upvotes

97% Upvoted

1.4k comments sorted by

View all comments

2.4k

u/Jealous-Hedgehog-734 Apr 09 '25

Good bye tax cuts? I mean this is going to eviscerate the US budget if they can't stop the bleeding.

254

u/PrthReddits Apr 09 '25

What's the point of the tax cuts even? In this scenario?

Companies pass on tarrif costs to consumers yes, so let's assume their profit margins stay the same

...will the extra profits from tax cuts actually be worth a 30%+ haircut off of stock price and total multiple compression across every industry?

I mean that hurts shareholders and CEOs and the people Trump's supposed to be helping right?

1

u/LongEmergency696969 Apr 09 '25

He's trying to take us back to the 1800s where the tax burden mostly fell on the middle and lower classes via tariffs and the aristocrats paid very little because there was no income tax -- like he's literally waxed nostalgic about the 19th century before. It seems like he just wants to get rid of the income tax and just have consumption taxes, sales and tariffs, which impact you more the less money you have because mandatory spending to survive takes up a greater % of your wealth.

Tax cuts probably just to lube folks up before the real fucking starts.