Americans should start to see the impact of the Republican tax law next month. The Internal Revenue Service has directed employers to update their income-tax withholdings to reflect the new law by February 15.
UBS thinks that certain parts of the economy will disproportionately benefit from consumers’ bigger paychecks.
“We find that lodging, entertainment, housing, other transport (i.e. air) should benefit most, with incremental growth of ~3% above prior baseline levels, followed by alcohol and new cars,” said Keith Parker, the head of US equity strategy at UBS, in a note on Thursday.
Based on new guidance from the Internal Revenue read more >>>