GOP leaders finally unveiled a proposed tax overhaul, which aims to cut the corporate tax rate to 20%. And Cumberland Advisors’ David Kotok told Barron’s that he thinks the package is worth at least 300 points to the S&P 500, but conceded that much of the value might be already reflected in stock prices.
Howard Silverblatt at S&P estimates that the weighted average tax rate for the S&P 500 companies is 25.6%.
But as the WSJ reports, inventors will have to wait through months of negotiations and fighting that could reshape the plan. In the meantime, all eyes are still fixed on the Federal Reserve and what’s in store for interest rates.
Read the full article here: http://www.barrons.com/articles/finallya-tax-plan-financials-lead-u-s-stocks-higher-1506545499