Thursday morning reports that a widely-expected corporate tax cut might be temporary has made for nervous trading. According to The Washington Post, House Ways and Means Committee Chairman Kevin Brady has proposed a reduction in the corporate tax rate to 20% which would expire in eight years, a detail that could garner wider support among Republican lawmakers without the need for Democratic votes. Sources suggested the hope is that the Senate might then alter the legislation to make the change long-term.
Investors so far have seen few other details on highly anticipated reform, though the promise of what's to come has supported market gains in recent months. The Trump White House has promised tax cuts for individuals and businesses, but details on how they will be paid for without blowing up the deficit have not been forthcoming. The search for sufficient revenue generators to cover tax cuts has reportedly held up lawmakers in making the bill public.
Stefan D. Angelov - Head of Stocks Trading
TheStreet
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