Following on from the release of the fabled Trump tax plan, here’s the key points
Most of it is pretty much spot on to what we heard already but here’s the key page from the plan.
On the face of it, it’s pretty lacking in numerical details and here’s no mention of how and when this might all come in nor whether any of it will be retroactive. That’s not going to go down well with markets who want the details to the nth degree.
K-Man has added his welcome opinion to the pot too;
Looks promising in the headlines for Corporate Americ a 20% ta , tax exemption on repatriation of profits held abroad.
Looks less promising for working households: an additional top bracket “possible”, let’s call that “certain” , many deductions and exemptions “simplified”, call that “scrapped”.
The market has partially anticipated( bought $) this reform plan this week, but cruelly lacks details from the Trump admin on how this is going to create growth, other than the Japanese stimulus style to their Corps by sending free cash( tax-free repatriation) and counting on them to create growth and pay higher wages.
The plan has to be validated and first USD has yet to be repatriated. But it’s a plan, so rather than buying $ right now, I’d be positive risk. Translated into a mildly bullish Cross JPY play.