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Stocks Soar As Senate Budget Committee Advances Republican Tax Bill On Party-Line Vote

Somewhat calming anxiety over the tax reform bill making it out of committee, Senator Ron Johnson confirmed he would vote 'yes'...

Senator Ron Johnson, a Wisconsin Republican, pushed to change the way pass-through businesses would be treated by increasing a proposed 17.4 percent deduction for pass-through business income to at least 20 percent.

 

Johnson would pay for the heftier tax break by eliminating the corporate deduction for state and local taxes.

 

Johnson said he voted to approve the measure "based on the progress" in recent days. “I’m getting commitments we are going to get this fixed,” he said.

And a few minutes later, the budget committee had enough votes to advance the Republican tax bill. Stocks extended their gains, USDJPY spiked and gold dropped...

As Bloomberg reports, the 12-11 party-line vote Tuesday came after Republican leaders addressed objections raised by GOP committee members who threatened to block it. The House passed its own tax-cut measure last month, and Senate Republicans can afford to lose no more than two votes among their ranks to pass the measure without Democratic help.

All those North Korean nuke worries gone...

 

Stocks bounce to record highs...

 

As Gold dumps...

 

That leaves it up to the Senate (and McCain, Corker, and Flake)...The legislation faces an open amendment process on the Senate floor that may spell substantial changes before a final vote that’s expected Thursday.