Republican control of the White House and Capitol Hill could result in one of the most influential years ever for tax reform, economist Kevin Hassett told CNBC on Friday.
"We might be about to have the most consequential tax policy year since the Second World War," said Hassett, former advisor to 2012 GOP presidential nominee Mitt Romney.
Hassett said on "Squawk Box" the tax blueprint devised by House Speaker Paul Ryan and House Ways and Means Committee Chairman Kevin Brady — which promises across-the-board tax cuts, massive economic growth and a new tax structure for U.S. trade without blowing out the country's deficit — could become law under a President Donald Trump.
"If I run the numbers, I think the dollar's 20 percent stronger. I think you have a wave of inversions because foreign companies want to have their headquarters in the U.S. It's a really, really big change," said Hassett, an ex-Fed economist who is director of domestic policy research at the conservative American Enterprise Institute think-tank.
"I don't think that markets have really digested how close we might be to having something that big happen," he added. "People in markets need to really start to look at this [Ryan-Brady] tax bill."