Tax reform gives stock market growth spurt legs: EY CEO

On the 10-year anniversary of the bull market, the Dow and S&P are up more than 300 percent since hit rock bottom. The good news is, the growth spurt is not yet over, according to the leader of one of the largest professional services organizations in the world.  But the semi-bad news-- the runway is very long.

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“We have not seen the major benefits from tax reform yet,” said EY Global CEO Mark Weinberger during an interview on FOX Business' "Mornings with Maria"on Tuesday.

President Trump signed the ‘Tax Cuts and Jobs Act’ into law last year, bringing sweeping changes to the tax code. Among the changes in the bill is a dramatic reduction in the corporate tax rate to 21 percent from 35 percent, in addition to instituting a mandatory one-time tax on accumulated earnings of foreign subsidiaries.

Weinberger said that changing the supply chains, putting more marginal dollar backed investment into the U.S. and investing in long-term capex, takes a long time.

“That takes quarters to put that together,” he said. “You need a business plan.”

EY, formerly known as Ernst & Young, works with businesses across the globe that are, according to Weinberger, currently modeling their corporate models on the prospect of increased investment in the U.S. He said it could result in higher wages and eventually increased productivity.

“That’s going take another year or two to feel that,” he said.