BOA: Tax Reform Will Boost S&P 00 Earnings, But Bad For Economy In Long Run

Tax reform bad in the long-term, good in the short-term.

The United States' new tax regime will boost S&P 500 earnings per share by 10% overall to $153 according to analysts at Bank of America Merrill Lynch.

In a report issued today, BoA's analysts have boosted their earnings expectations for the S&P 500 for 2018 to $153 from the previously projected $139. This is slightly lower than initially projected due to already announced investment and bonus plans.

[munger]

Tax Reform Bad overall says BAML

Breaking down the tax benefit, the most prominent benefit will come from the lowering of the corporate tax rate. The lowering of the federal rate from 35% to 21% will add an estimated $10 to overall EPS. On top...