Today we're waiting for the new US tax reform plan

U.S. President Donald Trump planned to propose on Wednesday steep cuts in corporate taxes and repatriated offshore corporate profits as the administration seeks to regain momentum on economic policies.

"We'll be having a big announcement on Wednesday having to do with tax reform. The process has begun long ago, but it really formally begins on Wednesday," the president said at the Treasury Department on Friday.

Secretary Steven Mnuchin and National Economic Director Gary Cohn are set to conduct a joint news conference around 20:30.

Trump has told aides to cut the income tax rate for public companies to 15 percent from 35 percent, an administration official said, according to a Reuters report.

Another official said Trump would propose a repatriation tax on offshore earnings of 10 percent, compared with the current 35 percent, the report said.

As a candidate, Trump promised to slash income-tax rates across the board while lowering corporate taxes from 35 percent to 15 percent. He said at that time that his proposal would boost economic growth and help companies to create jobs.

Most analyses of that plan estimated it would make the U.S. deficit balloon because of the lost tax revenue. The Trump team has argued that economic growth unlocked by the plan will help to blunt the deficit expansion.

If the reform passes, we are expecting boost of the Amrerican indexes.

Source: CNBC

Trader Bozhidar Arabadzhiev

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