US: Concerns about the government’s conviction to implement Tax plan - Rabobank

The US dollar has not gained any further ground against the euro and in fact, the dollar has slightly come off since yesterday, which is driven by some concerns about the government’s conviction to implement Trump’s Tax plan, only days after it was announced, according to analysts at Rabobank.

Key Quotes

“Specifically, some Republican budget hawks have voiced their concerns about the funding of the plan. The proposal released by the Trump administration said very little about how additional revenues would be raised in order to keep the plan budget neutral. It simply states that “numerous other exemptions, deductions and credits for individuals riddle the tax code. The framework envisions the repeal of many of these.” However, such changes could be contentious to some, and different groups in Congress will have different interests when it comes to these deductions and credits. This raises the question whether the US administration can garner enough support to permanently overhaul the tax code.”