Economists at the Royal Bank of Canada gave an optimistic take on tax reform plans unveiled in the U.S., suggesting in its current form it will boost growth and urge investors to rethink the stock markets.
“Acknowledging that some key details are still missing, a good baseline is that this tax plan could increase GDP (gross domestic product) growth by at least 0.5 percent per year,” senior U.S. economists Tom Porcelli and Jacob Oubina at RBC Capital Markets, and Michael Cloherty, head of U.S. rates strategy at the firm, said in a note on Wednesday evening.
