Because Trump's proposal is more about a private-public joint venture, a lot of states and municipalities may not get on board, Levkovich noted.
"It doesn't get Democrats on board and Republicans are pushing back a little bit because whatever tax they do collect, for example on a repatriation agreement on overseas cash, they would like to see that kind of be benchmarked against other tax cuts. In other words, try to make this as revenue neutral as possible, don't blow out deficits," he said in an interview with "Power Lunch."
, on the other hand, should be positive for the market.
Trump has proposed slashing the corporate tax rate from 35 percent to 15 percent. Levkovich doubts it will land so low, but said even a 20 percent rate would be beneficial.
Right now, the effective tax rate has been about 27 percent for the S&P 500, he said. And for every 1 percent of tax rate decline, there is over 1 percent of earnings benefit.
"The question is what do you pay for tax-related benefits. I think it won't be the full multiple, but it's still meaningful," he said.
And while a rising dollar will negatively impact earnings, he said investors will still come out ahead.
Meanwhile, people are still positioned cautiously, and that's good news for the market long term, Levkovich said.
"That generates a near 97 percent probably of higher stock prices a year from now."
However, "I suspect markets have probably run a bit too far in the very near term. But everybody kind of wants it higher. We're in a holiday spirit I guess."