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Latest Tax Reform Plan Just a Starting Point

The unified framework doesn’t change our fair value estimates or moat ratings.

We view the unified framework for tax reform, released Sept. 27 by the Trump administration, the House Ways and Means Committee, and the Senate Finance Committee, as a starting point for tax reform negotiation; we don’t think it’s truly representative of what an eventual tax reform bill may look like.

This 9-page framework is similar to other guiding-principle documents about tax reform, like the 35-page House Republican Better Way blueprint and the 1-page outline from the White House. Items in the previously released guidelines--such as the border adjustment tax in the blueprint and the 15% corporate tax rate in the White House outline--appear to have fallen by the wayside, so we anticipate adjustments to this framework, especially as the details are filled in.