Bank of America sees challenges for Republicans’ U.S. tax plan to pass

NEW YORK (Reuters) – A proposal by Republicans in the U.S. House of Representatives for a deep corporate tax cut and cutbacks in certain deductions will probably face opposition from lobbying groups and some federal lawmakers, Bank of America Merrill Lynch economists said.

“Our baseline forecast currently assumes no fiscal stimulus, but there is an upside risk that a small plan is enacted which would provide a modest boost,” Bank of America Merrill Lynch economists Michelle Meyer and Joseph Song wrote in a research note late on Thursday.

(Reporting by Richard Leong; Editing by Lisa Von Ahn)