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Trump says markets have not 'fully digested' benefits of tax proposal

Moments before the House approved the GOP tax bill on Wednesday, President TrumpDonald John TrumpDemocrats slide in battle for Senate Trump believes Kushner relationship with Saudi crown prince a liability: report Christine Blasey Ford to be honored by Palo Alto City Council MORE said that his economic advisers believe that financial markets have yet to "fully digest" the impacts of the Republican tax reform proposal. 

“They’re thinking that the market hasn’t fully digested what they’ve got here,” he said. “I don’t think the market has even begun to realize how good these are, like for instance, full expensing.”

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House passage of the measure, which includes a reduction in the corporate tax rate from 35 percent to 21 percent, means the bill will become law once Trump signs it. He is not expected to do so today. 

Trump and Republicans argue the tax plan will renew American economic growth, leading to the creation of new jobs.

Democrats, who voted unanimously against the bill, say its benefits tilt to the rich and predict it will add to the deficit while exacerbating inequality. 

Trump's remarks came after global financial markets dipped slightly on Tuesday.

The Dow Jones industrial average had been down on Wednesday, but was up 0.03 percent when this story was published. The market's rise appeared to come Wednesday in the minutes before the House action.

Besides offering a deep cut in the corporate rate, the tax bill proposes more modest cuts to individual tax rates, though those reductions are temporary and will expire in 2025. The proposal would also allow companies to deduct the cost of capital investments from their taxes — called "full expensing."