Summary
Trump’s proposed 2025 tax cuts could spark the biggest stock market rally of the decade. We break down what’s in the bill, why it matters, and how traders should prepare now.
Market Movers
- 📈 Final GDP q/q: Jun 26, 2025
- 📈 Core PCE Price Index m/m: Jun 27, 2025
📚 Deep Dive 📚
🧾 Good morning traders,
President Trump is back in office and he’s pushing what he calls the “Big, Beautiful Tax Cut 2.0” through Congress. This bill - currently under negotiation - is poised to be one of the most market-moving events of the decade, and we’re getting positioned before the crowd wakes up.
This isn’t just another stimulus—it’s a full-on liquidity surge in the making.
📜 What’s in the 2025 Tax Cut Bill?
While final language is still being debated, here’s what’s on the table: • Corporate tax rate cut from 21% to 15% • 100% expensing of capital investments (capex boom incoming) • Repatriation holiday 2.0 to bring offshore profits home • Individual tax cuts, including a higher standard deduction and lower top marginal rates • Potential capital gains tax relief for long-term investors
In short: it’s Reaganomics meets Trump’s deal-making. If passed, this will unleash sidelined capital, reward risk-taking, and compress corporate valuations, justifying higher equity prices.
📈 Market History: Tax Cuts Supercharge Stocks
🪙 Bush Tax Cuts (2003) • 12-Month Return: +26% • 3-Year Return: +40% • 5-Year Return: +60%
🏛 Trump Tax Cuts (2017) • 12-Month Return: +19.4% • 3-Year Return: +36.5% • 5-Year Return: +38%
The blueprint is clear: tax reform fuels rallies.
🔮 The 2025 Playbook
If Trump’s tax cut bill passes:
SPX 7000 becomes the conservative base case.
Here’s why: • Trillions in money market funds begin rotating into equities • Corporate buybacks accelerate again • Valuation compression leads to upward price discovery • Risk-on appetite dominates until rate cuts + tax cuts hit at once
You won’t want to fight that tape.
🎯 Final Word
If this bill passes, it will be the ignition spark for the next melt-up in stocks.
We’re not guessing - we’re preparing.
Liquidity moves markets. Tax cuts fuel liquidity. SPX 7000 is not a dream - it’s a math problem.
This is not the time to sit in cash. This is the time to know the playbook before the game changes. Let’s ride the wave smart. No emotion, just execution.
-Carlos Garcia Founder, GAR Capital
“Before the crowd sees it - I’m already trading it.”
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