Futures Surge As Johnson, Daines Greenlight Tax Bill

After a planned series of votes on the Trump tax plan were called off last night, GOP senators were scrambling to assuage the concerns of Republican holdouts who suddenly decided that the tax bill would blow out the deficit after one proposal – a so-called ‘trigger’ that would automatically raise taxes if revenue targets aren’t met – was rejected by the Senate Parliamentarian. With the first roll-call vote set for 11 am, Republican leaders were scrambling to have amendments of their own lined up for later in the day, with a vote hoped for by late Friday or early Saturday.
And while global stocks and US futures slid overnight on bill jitters, “risk on” euphoria promptly returned when in the latest Friday morning developments, Senators Steve Daines and Ron Johnson both said they would support the Republican bill following a plan to raise the pass-through deduction – a tax tool overwhelmingly used by small businesses – to 23%.
Senator Daines says he doesn’t see a revenue trigger replacement making it into the final Senate Republican tax bill, adding he thinks bill will pass without needing changes to win Sen. Bob Corker’s support. “That’s going nowhere,” he says of revenue raisers to replace the trigger, adding that what Corker is suggesting “is just causing more problems.”

This post was published at Zero Hedge on Dec 1, 2017.