EURUSD is clinging to gains above the crucial support of 1.0800 on Tuesday as the Dollar remains under pressure due to firm market speculation that the Fed will start reducing interest rates in September. According to the CME FedWatch tool, traders see a 77% chance that interest rates will be lower than current levels in … Read more
The fate of the 2017 Tax Cuts and Jobs Act (TCJA) is a key fiscal decision as most of its provisions expire in 2025. The TCJA focused on corporate taxation, including cutting the corporate tax rate to 21 percent and moving to a territorial system. It also allowed full expensing for investment and research and development, and limited deductibility of interest costs. The TCJA successfully removed tax-based distortions in the corporate sector and led to an increase in investment. Various tax plans propose different corporate tax rates, with Democratic plans suggesting 28 percent, Republican plans keeping it at 21 percent, and a centrist plan proposing 25 percent. All plans aim to make permanent the expensing provisions and suggest additional base broadening if more revenue is needed.