Economics
Trump Tax Plan Seen More Wash Than Windfall for S&P 500 Earnings
- Corporate reduction would help, but interest deduction at risk
- Even the overseas repatriation holiday is less than it seems
Hermes Investment's Parry: Trump Rhetoric Clouds Policy
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As much as anything, tax breaks promised by Donald Trump have fueled the rally in U.S. stocks since Election Day. A few strategists drilling down on the proposals are wondering what everyone’s so excited about.
Sure, lowering the corporate tax burden to as little as 15 percent has the potential to reinvigorate growth, boosting earnings at a time when S&P 500 Index’s valuations are among the highest in history. But as alluring as the prospect is, other initiatives ranging from border adjustments to an end of interest deductions could easily wipe out the benefits.