Senate

Yesterday, the dollar slumped and yields dropped after a WaPo report claimed that the corporate tax cut could - the core piece of GOP tax reform - would be delayed by up to a year, a clear indication that there may be irreconcilable differences in the Senate regarding tax reform. Then, moments ago, Axios confirmed as much, reporting that the Senate "won't release its version of the GOP tax bill tomorrow", citing a senior GOP aide. On Tuesday Mitch McConnell said that the bill would come out on Thursday.

U.S. equity futures are little changed as European and Asian shares retreated, led by sliding bank stocks and a drop in the dollar as doubts over republican tax cuts and ongoing bond curve flattening hurt sentiment and prompted fresh questions over the viability of the US expansion.

Suddenly Republican tax reform is looking deader than a doornail.

Remember when we declared the Trump tax reform effort officially "dead on arrival" yesterday after Senator John McCain affirmed that he would vote against anything that resembles the House bill in its current form? McCain’s opposition, by our count, brought the number of ‘no’ votes to three: Aside from McCain, Maine Senator Susan Collins said she would vote against the bill, as did Tennessee Senator Bob Corker.

It’s official: The Republican tax reform bill is dead on arrival in the Senate now that John McCain has become the third Republican senator to confirm that he plans to vote against it.