US President Donald Trump will plan proposals for huge tax cuts for large and small businesses in an overhaul providing the biggest cuts in history.
Trump will propose cutting the current 35 percent tax rate for corporations down to just 15 percent, according to an official.
Analysts also believe that the President will also cut taxes for the middle class and may cap the individual top tax rate at 33 percent.
“In trying to slash taxes for pass-through business entities, Trump is seeking to dramatically reduce his own tax bill,” said Frank Clemente, executive director of Americans for Tax Fairness.
In response to the news, world markets have hit new peaks. The largest gains this week came from the US, with Nasdaq Composite surpassing the 6,000 barrier for the first time.
Trump’s news is not the only thing affecting markets. Emmanuel Macron’s first-round French election victory had sent shares surging on Monday.
“US markets are leading the way higher, as the excitement over Donald Trump’s corporate tax cuts takes the mantle from the French elections … Despite the optimism of Trump’s tax plan, we are seeing the foreign exchange trends [from Monday] come back into play, with extended gains for the euro ahead of Thursday’s ECB meeting,” said Joshua Mahony, a market analyst at IG.
“While much of the focus has been upon a rate-raising Fed, the political cloud that is gradually being lifted over the eurozone is very likely to start putting pressure on [ECB president Mario] Draghi and co.”
Kathleen Brooks from City Index said on the matter: “Equity markets are putting a lot of faith into Macron. He first has to win the second round of the French presidential election and get the keys to the Élysée Palace, but then his newly formed party has to do well in the national assembly elections in June.”