Economic theory suggests that these tax cuts should increase economic growth. And with higher economic growth, it seems reasonable that higher stock prices should result. And tax reductions are often phased in over a period of years, the result of several pieces of legislation. Furthermore, the corresponding effects are felt over a period of years, and tax changes do not occur in a vacuum - there are other, simultaneous economic factors at work. And even though limited, the data generally supports this theory.
Past performance is no guarantee of future results.
Figures for the DJIA represent price change only. They do not include reinvested dividends. An investor cannot invest directly in an index and the past performance is not indicative of any specific mutual fund. All data calculations by Citigroup Asset Management. Beginning in 1921, the top personal income tax rate was reduced from 73 percent to 25 percent over several years under Presidents Harding and Coolidge.