Tuesday, December 12, 2017

Goldman expects "Tax Reform" to be Enacted in the "Next Two Weeks"

by Bill McBride on 12/12/2017 11:27:00 AM

A few excerpts from an article by Goldman Sachs economist Alec Phillips:

We continue to expect tax reform to be enacted in the next two weeks. A House-Senate agreement looks likely by the end of this week or over the weekend, with votes on a final package by next week.

A 20% corporate rate continues to look likely, in our view, but we do not expect the cut to take effect until 2019. ...

The estimated revenue gain from limiting state and local tax (SALT) deductibility could be overstated if states adapt to the new restrictions. It is difficult to predict how and when states will adapt to the changes, but they have an incentive to do so.