While President Trump could have a larger say in the renegotiation of trade agreements and creation of a more lenient regulatory environment, his third policy pillar—reforming the tax code—will require a more active collaboration with Congress. And although the political will is strong, there's enough disagreement on the details to alter the size, scope and timing of any final legislation.
Both President Trump and Speaker of the House Paul Ryan appear intent on lowering corporate and individual income tax rates, but have still yet to find common ground on the details.
In their second report in a series of six entitled “POTUS 45: The outlook for tax reform, “CIO Wealth Management Research (CIO WMR) looks at competing tax policies and shows how legislation in its final form could impact the equity and fixed income markets, U.S. corporations and, ultimately, investors like you.
- After securing the presidency and having majorities in both houses of Congress, the Republican Party has the best opportunity to pass major tax legislation in more than two decades.
- Speaker of the House Paul Ryan and President Trump both appear intent on lowering corporate and individual income tax rates, but have still yet to find common ground on the details.
- Paul Ryan and Chairman of the House Ways & Means Committee, Kevin Brady have made aggressive tax reform proposals, but they must still build consensus across Congress and with the new administration.
- While CIO Wealth Management Research (CIO WMR) foresees substantive changes to the tax code, it recognizes the final outcome may entail a less ambitious package and a longer timeline for implementation.
- Talk to your UBS Financial Advisor about how you can be best positioned for potential legislative changes and market movements.