US: Taxing times – ANZ

Analysts at ANZ point out that US Treasury Secretary Mnuchin was interviewed on CNBC overnight and he stated that “we have a very detailed plan on tax reform” and he “couldn’t be more excited about its prospects”.

Key Quotes

“He expects details will be released later this month, with the ultimate goal of getting the corporate tax rate down to 15%, although he noted that “wherever we end up, the objective is to get a competitive business rate.” Now given that market appears to have priced out any prospects of reforms from the Trump administration, any progress on that front will arguably be viewed positively. However, markets seem to be taking a sceptical view for now, and certainly the USD was knocked a little lower by his additional comment that a weaker dollar is “somewhat better” for US trade.”