When CNBC's Jim Cramer realized that the stock market has erased nearly all of its gains since Congress passed the Trump administration's sweeping tax overhaul, he was baffled.
"It's like the whole darned thing never happened," the "Mad Money" host said on Tuesday. "Does that make any sense, or does this weakness represent an absurd overreaction?"
Cramer went with the second notion. He pointed to the windfall that occurred after the corporate tax cuts: companies gave out employee bonuses, then searched for things to acquire. Some are still figuring out how best to use the extra cash.
Small- to medium-sized businesses are also showing interest in building more properties, opening more stores and hiring more employees, according to their first-quarter, post-earnings conference calls, Cramer said.
The "Mad Money" host pointed to his interview last week with Nick Akins, the CEO of American Electric Power.
Akins said that the new tax code, combined with federal deregulation, would drive growth in his company's main operating region between Texas and Ohio.
"The expansion is so robust that it's even spread to include retail — that's right, brick-and-mortar retail — a group that had pretty much been written off and left for dead not that long ago," Cramer said.
A smattering of recent earnings reports only bolstered Cramer's point. Results from First Data Corp. and Visa showed a surge in consumer spending since the tax overhaul; the regional banks showed improving loan growth; and numbers from the real estate investment trusts told a story of rising demand and favorable deregulation, the "Mad Money" host said.
"Honestly, the idea that tax cuts have done nothing is patently absurd," Cramer said. "They've led to a real step up in growth all over the country."
And while he acknowledged that the issues weighing down the market — particularly concerns about tariffs and inflation — were legitimate, he thought some money managers had taken their selling sprees too far.
"The inputs I'm looking at are simply too positive to dismiss," the "Mad Money" host concluded. "Stocks are almost right back to where they were before Congress passed the tax cut, even though business is in much better shape. To me, that's kind of nuts, even with all the new big-picture worries that we didn't have six months ago."
"It would be easy for me to be super negative here like so many others that I talk to, but when I look at the data, it tells me being too negative will be a mistake."
WATCH: Cramer on tax cut benefits and market negativity
Questions for Cramer?
Call Cramer: 1-800-743-CNBC
Want to take a deep dive into Cramer's world? Hit him up!
Mad Money Twitter - Jim Cramer Twitter - Facebook - Instagram - Vine
Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com