Analysts at ANZ explained that the Trump administration officials have announced that they expect to have a new framework for tax legislation in about two weeks – cutting it rather fine if the aim is to pass legislation this year.
Key Quotes:
"The news gave the USD a lift – it seems there is still some optimism in the market that the Republicans will be able to get a deal through. However, it will be challenging: Republican Party views are not united, while despite bipartisan meetings with senators, Democrats are unlikely to be as helpful in a tax deal as they were cooperative in kicking the debt ceiling debate down the road in the face of catastrophic hurricane damage."
"Nearly all Democrat senators signed a letter earlier this year stating that tax changes shouldn’t add to the deficit, mustn’t increase the burden on the middle class, and must go through the regular order process in Congress."
"To pass it without them, the budget process must be completed first, to enable a procedure that would avoid a Democratic filibuster. Add to that the fact that Congress must act by 8 December to fund the Government, and it’s a rocky road ahead."
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