Corporate Tax Cuts Are Potentially A Big Plus For Stocks

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On the morning of his appointment, President-elect Trump’s selection for U.S. Treasury Secretary, Steven Mnuchin, said that tax reform will be a priority of the incoming administration and that the President-elect was still targeting a 15% corporate tax rate. The U.S. statutory Federal corporate income tax is currently among the highest in the world at 35%, while the effective tax rate was only slightly lower in 2015 at 29%. The prioritization of tax reform, inclusive of corporate tax cuts designed to improve the competitive position of U.S. corporations within the global economy, is potentially a huge plus for the equity…

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