Consumer Sectors Will Benefit Most From Tax Cut: GS

Even before Donald Trump takes office as the 45th U.S. president amid expectations of a tax cut, the effective corporate tax rate has been falling, hitting an alltime low in the third quarter. It also has been the biggest tailwind to growth in return on equity on the S&P 500 – rising 21 basis points to 14.3% in the third quarter, the best since 1976. But what if there had been a tax cut? Or if one were to come under Trump? If the effective tax rate had been 20% – compared to the current 26% – the return on…