However, that doesn’t mean the gains would be across the board.
There are certain parts of the market which could run into some trouble. Hooper warns high-debt companies, home builders and even homeowners could become under pressure.
“If this goes through, we’re going to see a reset in home prices in high tax states because the cost of owning a home there is going to go up significantly,” noted Hooper.
Before that has a chance to happen, the Republican tax bill still faces obstacles. It needs to pass through both houses of Congress before it ends up on President Donald Trump’s desk. Along the way, the bill could start to look vastly different than its current form.
“We don’t know what exactly this tax bill will look like when it finally makes it through over all this bartering and negotiating that will happen in the coming weeks,” Hooper said.
Experts in the beltway are split over whether the lower corporate tax rate will be expendable.
Jared Bernstein, senior fellow at the non-partisan Center on Budget and Policy Priorities, believes the legislation will see a lot of changes over the next few months — and that includes whether 20 percent corporate tax rate figure stay.
“I suspect it will not,” said Bernstein, who was Vice-President Joe Biden’s former chief economist and economic adviser. “I think at the end of the year there will be a cut, but not of this magnitude… The bill has real hurdles.”
Bernstein notes that the business tax cuts would contribute to the lion’s share of the fiscal deficit, and lawmakers from both sides of the aisle will argue against it.
Yet Douglas Holtz-Eakin, a former economic advisor to Arizona Republican Senator John McCain, is optimistic.
Holtz-Eakin, who is also the former director of the Congressional Budget Office, put a 95-percent probability that the core of the Republican tax plan will be approved.
“I think the 20 percent number will stick,” Holtz-Eakin said, despite the “enormous amount of sound and fury surrounding the bill.”