September 2017 Economic Recap
GOP leadership released their long anticipated plan for tax reform this past month. The plan was headlined by a proposed cut in the corporate tax rate from 35% to 20%, along with a special one-time rate for profits that corporations repatriate from abroad. On the individual front, the plan also proposed a reduction in tax brackets from seven to three, with rates of 12%, 25%, and 35%. In addition, the standard deduction would be doubled for both married and single filers, to $24K and $12K, respectively. Finally, the current proposal gets rid of the majority of itemized deductions, with notable exceptions being the mortgage interest deduction and charitable contributions.
In spite of the hurricanes, the economy continued its upwards momentum during the month. Friday’s jobs report indicated that the unemployment rate fell from 4.4% to 4.2% in September, and wage growth increased to a post-recession high of 2.9% year-over-year. The report bolsters the Fed’s case for another rate hike in December; markets are currently pricing in a 77% chance of this occurring.
For a deeper look into the economic data released during September, please follow the links below: