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Tax overhaul not perfect for everybody but it's good for the economy, says BB&T CEO

  • The Republican tax reform plan is a "big deal" for the U.S. economy, BB&T CEO Kelly King told CNBC on Tuesday.
  • "It's certainly good for banks but it's mostly good for the overall economy," he said.
  • King also believes there will be a "big payback" for the economy from small and medium-size companies that will start to invest in their businesses.

The Republican tax overhaul plan is a "big deal" for the U.S. economy, BB&T CEO Kelly King told CNBC on Tuesday.

"I know it's not perfect for everybody," he said in an interview with "Closing Bell."

"It's certainly good for banks but it's mostly good for the overall economy."

The Senate passed tax overhaul legislation over the weekend, about a week after the House passed its bill. The two chambers must now work to reconcile their bills before sending a final version to President Donald Trump to sign into law.

House Way and Means Chairman Kevin Brady (L) (R-TX) and Speaker of the House Paul Ryan (R) (R-WI), joined by members of the House Republican leadership, introduce tax reform legislation November 2, 2017 in Washington, DC.
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House Way and Means Chairman Kevin Brady (L) (R-TX) and Speaker of the House Paul Ryan (R) (R-WI), joined by members of the House Republican leadership, introduce tax reform legislation November 2, 2017 in Washington, DC.

Among other things, Republicans are looking to reduce the corporate tax rate to 20 percent from 35 percent.

King said the tax cuts would significantly benefit BB&T, which operates more than 2,100 financial centers in 15 states and Washington, D.C.

"There will be a tax reduction that will allow us to invest more in services for our clients. It would allow us to invest more by giving back to our community. It will allow us to give more back to our associates. So it's kind of win-win for everybody," he said.

Investors agree. Financials are up more than 3 percent over the past week on optimism about tax reform.

King also believes there will be a "big payback" for the economy from small and medium-size businesses.

For the last 10 years, King said he's spoken to "hundreds and hundreds" of small business owners who have not invested in their businesses because of uncertainty over taxes and regulation.

"Now they are going to have not only just lower absolute taxes, they are going to be able to expense the new equipment to replace the old. I believe they will rush to do it. That will be stimulative to the economy and it will be robust," he said.