US: Tax reform in the limelight – BBH

Analysts at BBH suggest that there are few political issues which will likely shape the investment climate and the most important is US tax reform.  

Key Quotes

“Optimists still think a vote by both houses can be held by the middle of next month, ahead of the winter recess.  We are skeptical, and the point we have made that is worth repeating is that, like health care reform, the key debate is not between the two main parties, but within the Republican Party.”  

“Despite months of leaders of both houses working with the Trump Administration, the bills are dramatically different on several key issues.  We also note that the scoring still places the evolving House version having more than the agreed-upon $1.5 trillion addition deficit over the next ten years.  There are also conflicting incentives for House Republicans, who will face voters next year, that herald from states that Trump lost in 2016.  It appears that prospects of fiscal reform are remote.”