Senate

Yesterday's Japan flash-crash inspired selling continues for a second day, with global equities - and bonds - sliding early Friday on concerns U.S. tax reform - and corporate tax cuts - will be delayed after Senate Republicans unveiled a plan that differed significantly from the House of Representatives’ version. After suffering their biggest plunge in 4 months on Thursday, European stocks failed to find a bid along with Asian stocks, while U.S.

Confirming the leaks that occurred in the last hours, Senate Republicans just released their proposal for the tax bill and it is notably different from the House bill.

Here are the most notable highlights (more details below):

As the House tax bill hits the wires, leaked details of the Senate's tax bill are coming out...

There will be 7 tax brackets - considerably more complex than the 3 brackets in the House bill

Senate tax legislation will keep seven tax brackets but alter the rates, GOP Sen. John Hoeven tells reporters.

 

Hoeven says the brackets will be set at 7%, 12%, 22.5%, 25%, 32.5%, 35%, and 38.5% (lower than the current top tax rate of 39.6%)

Confirming reports from earlier this week that the Senate GOP tax plan would delay the corporate tax cut for (at least) one year, a move that would strip the proposed tax reform of its most potent benefit, moments ago the Wapo reported that in a few hours, Senate Republicans will propose delaying a cut in the corporate tax rate from 35 percent to 20 percent until 2019.

After a wave of GOP defections in recent days and waffling on timing, Goldman's economics team apparently still sees a 65% chance of a tax reform bill being enacted by "early 2018," but warns that the final bill may look nothing like the one recently proposed by the House.