Tag Archives: US tax reform

The 21% corporate tax rate could cause 2018 expected earnings growth for US stocks to more than double. We see some upside risk to our US equity scenario.Last night, the US Senate approved the tax bill. It has since returned to the House of Representatives for administrative reasons, but, in line with an earlier vote, a green light looks now highly likely. Shortly thereafter, President Trump should sign it formally into law. If the tax reform is adopted, the statutory tax rate is expected to...

The Senate budget resolution this week was a positive step, but we remain cautious about the scope of any tax cuts eventually enacted.The US Senate this week approved a budget resolution, which effectively allows it to side-step Democrats’ opposition to start formulating tax cuts. The bottom line is that the Senate vote increases the odds of some tax cuts actually happening, but we think that the road to the finish line will be bumpy and that any tax cuts, if enacted, could be modest. There...

We are sceptical that Trump’s tax proposals will make much headway and that what tax cuts are enacted will add much to US growth.President Trump’s ambitious tax plan, just unveiled, aims to simplify and lower tax rates for households and corporates, with the statutory tax rate for the latter to be reduced to 20% from 35%.We remain sceptical that this plan will see its way through Congress given opposition from Democrats and even some Republicans wary about sharp increases in the deficit. The...