Here's how Wall Street is reacting to Trump's tax plan

Key Points
  • Wall Street firms are increasingly bullish on tax reform after the Trump administration's Wednesday tax-cut announcement.
  • Goldman Sachs expects a version of tax legislation will pass in the first quarter of 2018.
U.S. National Economic Director Gary Cohn (L) and Treasury Secretary Steven Mnuchin end their breifing after unveiling the Trump administration's tax reform proposal in the White House briefing room in Washington, U.S, April 26, 2017.
Kevin Lamarque | Reuters

Wall Street is increasingly optimistic a version of tax reform will eventually pass after President Donald Trump's administration announced its latest tax-cut proposal.

White House officials revealed on Wednesday Trump's plan for large tax cuts for repatriated offshore corporate profits and a reduction of the corporate tax rate to 15 percent from 35 percent.

Below is a summary of what Wall Street firms are now telling clients Trump's tax-plan announcement means.

Goldman Sachs

Goldman's Alec Phillips says tax reform is not likely by year-end because the final tax legislation needs more time to be written and negotiated. However, he predicts a version of the tax plan will pass Congress by the first quarter of 2018.

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