Today the White House announced the President had asked my good friend John Snow to remain as Treasury Secretary. That’s great news for the economy and the stock market.
John is a real believer in the power of low tax rates to improve growth and stock market values. He was the point man two years ago in pushing the dividend tax cut through Congress. Since then equity values have increased by nearly 40%, some $3 trillion dollars.
He can help do it again in 2005.
This time the stakes are even bigger. Make the lower marginal rate permanent. Reduce the dividend tax rate to zero. And reform social security to allow people to own personal retirement accounts. Together these changes could give both the US economyu and the stock market a real lift next year.