With Congress finally making at least halting progress toward tax reform, JPMorgan is advising clients to start preparing for the investing implications.
The firm believes that an initial draft on tax reform will be delivered, as promised, by Sept. 25 even though substantial differences still exist within the "Big Six" legislators working on the plan.
That draft "will help dimension the extent of the reform," Dubravko Lakos-Bujas, JPMorgan's head of U.S. equity strategy, said in a note. Following the draft, a budget resolution proposal is likely to be made public in mid-October.
"This will ultimately indicate the likelihood of a reform happening, how aggressive the proposed tax reform package will be and how it may be funded," Lakos-Bujas said. "Regardless, the proposal will bear a high degree of execution risk as Congress attempts to build broad-based consensus."