Another Delay: Senate Won’t Release Tax Bill On Thursday As Mnuchin Admits Corp Tax Cut Delay Likely

Yesterday, the dollar slumped and yields dropped after a WaPo report claimed that the corporate tax cut could – the core piece of GOP tax reform – would be delayed by up to a year, a clear indication that there may be irreconcilable differences in the Senate regarding tax reform. Then, moments ago, Axios confirmed as much, reporting that the Senate “won’t release its version of the GOP tax bill tomorrow”, citing a senior GOP aide. On Tuesday Mitch McConnell said that the bill would come out on Thursday. That said, the aide reportedly said “this wasn’t a delay, because the release of the Senate bill was always going to start after the House Ways and Means Committee finished marking up its bill.”
As Axios explains, the delaying introduction of the bill is problematic “because it not only gives off the impression that things aren’t going well (whether it’s true or not), but also removes one more day that could have been spent getting the caucus on board with the bill.”
Meanwhile, speaking on Bloomberg, Treasury Secretary Mnuchin said that the White House’s preference would be to start the corporate tax rate cut next year, which again implies a material probability of delay.
‘Our strong preference is that the corporate tax rate starts next year. The longer we wait, the worse it is for the economy,’ Mnuchin said in interview on Bloomberg TV.

This post was published at Zero Hedge on Nov 8, 2017.