Across all ideologies, a mere 24 percent say taxes on the highest earners should be cut, while 43 percent think they should be raised. The GOP plan cuts the top tax rate for individuals to 35 percent while doubling standard tax deductions. The poll surveyed 1,893 adults.
Wall Street’s perspective is bound to be different.
After all, the market rallied this year at least in part on hopes for tax reform, though the effort remained clogged in a Congress beset by infighting. Getting at least a liftoff for the plan raised at least some hopes for a deal to get done.
“This clearly is the beginning of negotiations, although it’s worth noting that there’s no legislative language. It’s just a summary,” Valliere said. “What the market cares about is the process of tax reform is still alive. … This process is alive and could be quite positive for equities.”
The market did stage a modest rally Wednesday as stocks added to what already has been a record-breaking year.
“From Wall Street’s perspective I think it’s about as good as can be expected,” said Brad McMillan, chief investment officer at Commonwealth Financial Network.
However, McMillan also thinks Main Street should be happy with the plan as well. The standard deduction change will help households, though some areas will lose out by the elimination of the deduction for state and local taxes. However, what the final package looks like is far from certain.
“To some respect this is a trial balloon. It’s a statement of intent,” he said. “What the president would like to do and what Congress will actually are not necessarily the same thing.”
WATCH: Sen. Baucus says there’s still a lot of work to do on tax reform.