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Ray Dalio Doesn’t Believe Tax Reform Will Improve Wealth Gap

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Ray Dalio on wealth gap

In December 2017, both the Senate and the House of Representatives passed the tax reform bill, which could boost the US economy (SPX-INDEX) (SPY).

The reduction in the corporate tax structure could help US businesses to increase their net earnings. According to Ray Dalio, although the tax reform boosted wage growth and bonuses, it likely won’t decrease the wealth gap in the US (QQQ) (COMP-INDEX).

The investor earlier said in an interview with CNBC that the rising wealth gap is a major concern for the US economy (IWM). At the World Economic Forum, he said tax reform won’t “move the needle” on the wealth gap. Major companies of the United States declared various bonuses and improvements in employee wages after the passage of the tax reform bill.

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Tax reform

Tax reform could help US companies increase their profit margins. Companies could use higher profits to pay dividends to shareholders, invest in new projects, and expand their existing capacities.

In the next part of this series, we’ll analyze Bridgewater Associates’ largest holdings in 3Q17.

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