Analysts at Amplifying Global FX Capital explain that the Trump administration’s latest policy announcements are similar to key promises made by him during the election campaign and the so-called Trump rally that came in the early months after the election were built on the idea that significant tax reform would happen.
Key Quotes
“More recently, engulfed in controversy, sidetracked on other issues like border security, immigration, healthcare and geopolitical risks, the market has lost confidence in the Trump administration capacity to deliver on its growth agenda, including tax reform.”
“The realities of moving bills through Congress have also come into focus, following the failed attempt to pass a Healthcare bill or to get initial funding for the Mexico border wall. There remain considerable doubts that this tax policy will come to life, notwithstanding the Republican majority in both houses of Congress.”
“Tax reform is likely to take a long time, probably after the next fiscal year beginning in October. The Tax reform debate will run into the debt ceiling problem around October.”
“It is well recognized that any major tax reform is an uphill battle. Many will see this tax plan (outlined in broad strokes without funding) is more an opening gambit by the administration that a fully formed plan.”
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