(17 NOVEMBER 2017)DAILY MARKET BRIEF 1:House passes largest tax system overhall

The House of Representatives passed a bill for the largest overhaul of the US tax system in 31 years. The text provides for reducing the corporate tax to its lowest level since 1939 and to reduce the personal tax in 2018. It repeals the "alternative minimum tax", a flat tax, increases the tax credit for dependent child, establishes the abolition of the estate tax by 2025 and modifies the tax regime applied to multinationals. The bill if made into law would increase taxes for some people because of the removal of deductions for regional taxes, medical expenses and student loan interest. Overall, the bill would reduce federal taxes by $ 14 trillion over the next decade. Currently, futures on federal funds indicated a 100% probability of a 25bp hike in central bank rates at its meeting in December

By Peter Rosenstreich