Economic Outlook - The Heritage Foundation's chief economist predicts growth for the U.S. economy in 2026, citing favorable tax and regulatory reforms as key drivers [1][2][3] - The economist expresses optimism about the potential for a market rally if unemployment remains stable and economic stimulus is effective [4] Monetary Policy Risks - Concerns are raised regarding Federal Reserve policy, particularly if current chair Jerome Powell continues to make mistakes in managing interest rates and the balance sheet [5][6] - The selection of the next Fed chair is deemed crucial, with potential candidates favoring rate cuts in 2026, which could positively impact the economy [6][7] Housing Affordability - A study indicates that over 75% of homes in the U.S. are now unaffordable for typical households, defined as spending more than 30% of income on housing [10][12] - The current high home prices relative to median household income are highlighted as a significant barrier to affordability, regardless of interest rates [11][12] - The discussion includes the impact of illegal immigration on housing demand and supply, suggesting that reducing illegal immigration could alleviate some housing pressures [13][14]

Joining us, co-anchor of CNBC's Squawkbox and New York Times columnist Andrew Ross Sorcin, professor of public policy and economics at the University of Michigan, Betsy Stevenson, and co-founder of Punchable News and MS Now political contributor Jake Sherman. Andrew, this was a surprise from Mi from uh from Mitt Romney. Is he getting any support out there from I don't know, the multi-billionaire class that might be sailing 300 foot yachts? I doubt it. I doubt he's going to get any support from them necessar ...

From @WSJopinion: The second Trump term is a mixed bag of constructive (tax reform, deregulation) and damaging (tariffs, mass deportation raids) policies. The President’s order to liberate companies from the proxy advisory duopoly is in the plus category.https://t.co/bER2Vo0DXK ...

A tax reform that is radical, popular, creates good incentives and is likely to improve the health of the public finances for decades to come. What a pity that the British government has had so few of those https://t.co/EvgE9h5STS ...

The UK government is expecting a bigger windfall from major reforms to a preferential tax system for wealthy residents, despite a growing number of ultra-rich individuals relocating to other territories https://t.co/YKybKV7WVu ...

Economic Policy - Deregulation and tax reform are identified as key factors in Trump's first-term economic success [1] - The opinion suggests a continuation of deregulation and tax reform policies [1]

Group 1 - Political decisions, particularly under President Trump's leadership, have introduced a new level of unpredictability in the markets, causing concern among Americans regarding the security of their finances [1] - Financial planners emphasize the importance of having a goals-based financial plan to navigate economic uncertainty, which helps manage both long-term objectives and day-to-day cash flow [3][4] - The Trump administration's tax reforms, including the One Big Beautiful Bill Act (OBBBA), offer various tax breaks that are set to expire soon, prompting the need for individuals to act quickly to benefit from these provisions [5][6] Group 2 - Recent interest rate cuts by the Federal Reserve may indicate the beginning of an easing cycle, but inflation remains unpredictable due to tariff policies and potential changes in consumer prices [6][7] - Inflation expectations have cooled recently, but ongoing tariff pressures and tax policy changes could lead to increased costs for goods and services, making it crucial for individuals to stay informed and adjust their financial strategies accordingly [7]

Political Landscape & Election Results - Argentina's President faced a crucial midterm test [1] - Investors lost faith in free market experiment after a crushing defeat [2] - The President turned it around with 41% of total votes, nine points above the opposition [2] - The election result doesn't mean things will be easy, still far short of a simple majority in the lower house [3] - Lasting reforms (tax, labor, and pension) are key to ensure re-election in 2027 [3] Market Reaction - Argentina bonds and stocks soared in response to the election results [2] - Benchmark dollar notes were up more than 0.13% [2] International Relations - Donald Trump extended a $20 billion lifeline to the crisis-prone nation [2]

Core Viewpoint - The proposed implementation of a new 15% tax on profits made by Limited Liability Partnerships (LLPs) is criticized by law firms as being short-sighted and potentially damaging to the legal profession and the UK's status as a global legal hub [1][5]. Tax Impact - The new tax would increase the tax bill for partners at top corporate law firms in London from £1.78 billion to £2.04 billion, representing an increase of £260 million [2]. - The four largest firms in the "Magic Circle" (Clifford Chance, Freshfields, Linklaters, and A&O Shearman) would collectively pay an additional £262 million on their £3.8 billion in profits for the year [3]. Industry Response - The legal profession has expressed strong opposition to the tax plans, warning that they could lead to job relocations abroad and hinder growth [5]. - Colin Passmore, chairman of the City of London Law Society, emphasized the need for constructive consultation with the legal sector before implementing such tax changes, highlighting the sector's significant contribution to the UK economy [6]. - David McNeill from The Law Society noted that imposing a new tax could severely impact the legal profession, which is seen as vital to the government's growth strategy [7]. Global Competitiveness - The potential tax changes could incentivize law firms to transfer work and talent to countries with more favorable tax systems, resulting in a loss of revenue for the UK Exchequer [8].

Core Points - The IRS released important tax-planning numbers for 2026 despite a partial government shutdown, providing insights into the tax situation for Americans [1][2] - The new tax brackets and standard deduction values reflect adjustments due to inflation and changes from the Trump tax bill, with brackets adjusted approximately 2% higher for 2026 [3][4] - The One Big Beautiful Bill Act (OBBBA) maintains current tax rates, preventing a tax hike for nearly two-thirds of taxpayers, and makes permanent the income-tax brackets established by the Tax Cuts and Jobs Act [4][6] Tax Brackets and Deductions - The U.S. has a progressive tax system where individuals are taxed at increasing rates as their income rises, with only the income within a higher bracket being taxed at that rate [5] - The OBBBA introduces an additional inflation adjustment for the 10% and 12% tax brackets starting in 2026, which is expected to have a modest impact on tax bills [6][7] - The cost of the extra inflation adjustment is projected to add approximately $24 billion to the federal deficit over a decade, while extending current marginal tax rates is estimated to add $3.1 trillion to the deficit [7] Broader Implications - The OBBBA affects more than just tax brackets and rates; it also impacts deductions and tax credits, which play a significant role in reducing taxable income and tax liability [8]