Liberals, with the collusion of main stream media, have painted tax reform as bad for Americans. Yet 80 percent to 95 percent of Americans are now enjoying a tax cut. At the same time, businesses are moving into the U.S., which will generate new tax revenue not included in the CBO estimate. Repatriation of offshore money held by companies like Apple will generate $340 billion — again, not accounted for by CBO.
Liberals also like to point out stock ownership is concentrated in fewer hands as individual investors now own less stock than they did before the 2008 crash. Thinking about this conundrum, I realized that the tax cut can help counter this situation. People suddenly have been given a cash windfall that, if invested, can build a stock portfolio over time. Even $1,000 per year can yield very significant returns.
How much? I analyzed market returns over the last century: $1,000 (indexed for inflation) invested each year in the S&P 500 yielded an average portfolio value of $1,000,000 after 40 years. And this included market crashes. The strategy requires no high-priced advisor; you just buy a low-cost S&P 500 index fund.
Now there is no excuse for anyone to say “only the rich own stocks.”
Tom Seim, Richland