Bloomberg with a sources story out a few minutes ago, now with further details
- House tax planners looking at reducing the corp tax rate to 20% by 2022
- Will aim to reduce the tax by three percentage points a year starting in 2018
- The gradual reduction plan has been considered but may not be final
- Plans may face opposition from those who want immediate tax cuts to spur the economy
That’ll be a reason why the buck has dropped to 113.20, and Treasury yields are painting a similar picture. The market has got itself worked up that we’ll be getting the mother of all fiscal stimulus tax plans but a phase in is probably the likely scenario. Whenever a government gives with one hand, it usually takes with the other, so while a big upfront tax cut sounds like a good idea, there’s bound to be someone getting equally slammed on the other side.
The full Bloomers story is here.