Analysts at ANZ explained that the details on US tax reform are being ironed out with estimates of the costs and benefits slowly being released by research groups.
"There are two sets of duelling plans by the Republicans in the House and the Senate.
Note that the US requires that any tax measure begins in the House, so the Senate is working concurrently, presumably to save time.
If the two chambers approve different versions of the legislation, they will have to reconcile those differences and vote to approve the same bill before it can ultimately be sent to the president for his signature.
Key differences seem to centre on the number of required tax brackets, specifics on certain state and local tax deductions and timelines for tax rate deductions.
Inequality concerns have also been highlighted, with the Tax Foundation publishing a report that stated the top 1% of earners would likely see their after-tax income grow by 7.5% in 2018 under the Senate plan, while the bottom 80% would see growth of 1.1-1.9%. They added that the bill would lead to an additional 3.7% in GDP, a 2.9% rise in wages and 925k new jobs. Over the longer term, the benefits to both sets of earners would eventually balance out though."
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