In the face of ongoing market uncertainty, economist Stephen Moore is sounding the alarm on tax increases. In an interview with Fox News Digital, the Heritage Foundation senior visiting fellow has emphasized the potential damages of raising tax rates. “The one thing that would really send the stock market into a bear market slide would be if Republicans agree to raise tax rates,” Moore said.
“That would be catastrophic. It would be a huge mistake for the Republicans to do that. Don’t go there. Republicans were put on this Earth to cut tax rates, not raise them.” Moore offered such commentary while lawmakers continue to debate tax policies amidst growing fiscal concerns.
The Loss of Control in the Stock Market and Tanking Prices
Moor cited panic from the masses being “sensitive” to the current fiscal situation while warning that investor mode would only strengthen any form of market slide. “This is a president who is going to get the policies right. He got them right in his first term. We saw a booming market… but people tend to panic when the stock market falls like it has in the last couple of months.
And then they make the biggest mistake possible, which is selling their stocks at a low price,” he elaborated. Despite the recent positive trends, the recovery remains precarious and volatile, partly fueled by uncertainty regarding U.S.–China trade relations and decisions on tax politics.
No Relief on China Tariffs as Market Wavers
Tariff concerns have heightened recently after it emerged that China is not negotiating with the US. Leavitt remarked on the China relations issue during an interview on Fox News. “There will be no unilateral reduction in tariffs against China. The president has made it clear, China needs to make a deal with the United States of America…” Leavitt continued. Moore highlighted these events as more evidence of troubling factors for investors while remaining confident toward the direction of economic policy under Trump.
Impending Tax Deadlines Heighten Tensions for Congress
Tensions around lawmakers are increasing, as the 2017 Trump-era tax cuts will expire in a few months if Congress does not intervene. In the event that these cuts lapse, the taxes for almost every American citizen will increase dramatically. Moore warned any Republican concession to increase corporate or personal taxation would have catastrophic consequences.
“There’s been some chatter on raising the corporate tax rate or raising the personal income tax rate, which have been paid by all the small businessmen and women,” he said. “So, I would be cautious about that, although I think we put out that fire. But stay tuned.”
Trump’s Track Record on Growth Cited as Cause for Optimism
Regardless of the chaos, Moore maintained a bullish Trump vision for the economy in the long term. “Donald Trump is probably the most pro-business and pro-America president we’ve had in modern times. So we’re going to see this stock market roar back to life sometime in the next few months,” he said. Moore encouraged investors to refrain from overreacting to these short-term dips, stating that these moves are risky for long-term wealth.
“If your investment horizon is anything above the two, three, four, five, or six-year mark, then I suggest you stay invested because the market is bound to spring back to life,” he added.
Temporary Treadmill Trade Disputes Expected to Be Roadblocks
Moore recognized that the current tension of disputes, along with the tariffs, could continue to roil the markets for some time. Yet he projected to remain especially upbeat on the broader picture. “I think Americans should see this pain, as Trump puts it, as a means to achieve better trade balance and deal with the rest of the world. If he manages to pull this off, which I think he will, you are going to see a huge springback in the market, a real boom, and a bullish market for the next couple of years,” Moore said.
Recalling Trump’s first term, Moore mentions market growth, saying, “The Dow Jones in four years was up 60%, the S&P 500 was up 70%, and the Nasdaq was up over 100%. So he has a track record of having an agenda that’s very positive for investors and for companies.” While acknowledging that the future may be “rocky,” Moore maintained his trust in Trump’s strategies, insisting that patience would ultimately be advantageous.
