Prediction: When (or if) congressional Republicans pass their tax plan, the stock market will go up, and Donald Trump will gloat. But there’s an explanation for any stock market uptick, and it’s not a good explanation for the economy as a whole or for middle- or low-income families:
The bill, which could be enacted within days, will give the country's seven largest banks — not including Goldman itself — an average 14% increase in earnings, Goldman found. That's because of the plan's big cut in the corporate tax rate -- from 35% to 21%.
Wells Fargo (WFCPRJ) would make out the best, with an 18% boost, in large part because it derives nearly all of its profits from the United States, Goldman said.
More of the same: Rich people taking care of rich people. And Donald Trump demanding a pat on the back for it.