Weekly Market Commentary 11/3/2017

The financial markets had little problem digesting an onslaught of political, economic and policy developments this week. On the political front, Republicans unveiled their much-anticipated tax plan, dubbed The Tax Cuts and Jobs Act, which makes sweeping changes to the tax code. The centerpiece, as advertised, is a large corporate tax cut, from 35% to 20%, and a crazy-quilt package of modifications for individuals, which cuts rates for most taxpayers but also removes some deductions that will boost the tax bill for many others. As with any complicated legislation, the tax overhaul will result in an array of winners and losers, setting the stage for a pitched battle on Capitol Hill. Simply put, the GOP faces a hard sell to recalcitrant Democratic lawmakers as well as to skeptical Republicans whose constituents include many prospective losers under the proposal. No doubt, if a tax bill does successfully wend its way through the legislative process, it will look considerably different from the package revealed this week.