While President Donald Trump‘s “One Big, Beautiful Bill Act” is expected to reduce taxes and “put more money in people’s pockets,” experts argue whether the tax cuts will cater to the value or growth stocks within the U.S. economy.
What Happened: The new tax bill is expected to eliminate taxes on social security benefits, tips, and overtime, which will be a big “windfall for many Americans,” according to Louis Navellier, the founder and CIO at Navellier & Associates.
Additionally, the bill also proposes a $40,000 state and local tax (SALT) deduction. However, the Congressional Budget Office estimated that this bill will add about $3.8 trillion to the federal government’s $36.2 trillion in debt over the next decade.
Navellier, who expects interest rate cuts by the Federal Reserve in the coming months of 2025, said that “When you put more money in people’s pockets, consumers cannot help themselves, so retail sales tend to rise.”
He expects stocks like Brinker International Inc. (NYSE:EAT) and CAVA Group Inc. (NYSE:CAVA) to benefit as consumer spending at bars and restaurants rose 1.2% in April.
“As far as growth …