Senate tax bill to delay corporate tax cut until 2019, dollar to deflate?

Ross J Burland FXStreet

As was rumoured during the week, US Senator Bill Cassidy, a Republican from Louisiana has confirmed the Senate Republicans on Thursday plan to propose delaying a cut in the corporate tax rate from 35 percent to 20 percent until 2019.

This should let some air out of Wall Street and the US dollar. In fact, Stocks are already tanking and DXY is -0.31% so far.

"Some Senate Republicans objected internally to the one year delay, but they were overruled.

To try to prevent companies from waiting until 2019 to invest, Senate Republicans will propose to allow companies to immediately deduct all capital investments in 2018 to incentivize them to spend more money immediately, the people said," Washington Post reported.

The text of the plan is expected out sometime in the next 5-6 hours, if not sooner. EUR/USD is at the highest level since 3rd Nov post NFP's data at 1.1654. USD/JPY headed to session lows?

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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