Tax cuts give boost to small caps and wealthy

Tax cuts in the US will benefit small companies and wealthy individuals but will not slow rising unemployment or significantly impact on large corporations. As part of the US government's long-term fiscal programme, income tax rates and dividend taxes were cut on 1 July, adding up to a $350bn reduction in government revenue. Alison Wright, US investment manager at Britannic Asset Management, says the tax cuts mostly affect high net worth individuals. She adds: 'High income individuals tend to spend more. However, spending depends on the confidence of the market. The more confide...