U.S. stocks are under pressure on Thursday but have bounced off their daily lows following a Politico report earlier today indicating that the Senate tax reform proposal will face a delay with the implementation of the corporate tax cut until 2019, citing 2 people familiar with the matter.
The Senate tax reform proposal was expected to be released today as Republicans in the Senate attempt to cobble together a viable tax reform plan that doesn’t add as much in deficit spending compared to the House tax reform version.
The House tax reform proposal, which underwent the process of markup this week, contains a 20 percent corporate tax cut, and was first estimated by the Joint Committee on Taxation to result in a decline of $1.478 trillion in federal revenues over 10 years due to a broad series of tax cuts and revisions with tax deductions.
But that $1.478 trillion figure was just increased to $1.7 trillion by the Congressional Budget Office (CBO) yesterday after they provided an updated Joint Committee on Taxation assessment of the latest marked up House tax reform bill.
The House is currently working to revise their tax reform proposal to keep deficit spending below the $1.478 trillion threshold with the hope of bringing it for a vote in the near future.
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