Lawmaker comments that any corporate tax cut will have to be temporary, at least as written in a current proposed bill, nicked stock futures and helped drag the dollar lower in early trading Thursday. House Ways and Means Committee Chairman Kevin Brady, a Texas Republican, has said that the bill he will introduce would not permanently lower the corporate tax rate to 20%. Instead, the cut would be temporary, and that reduction would expire in around eight years, the Washington Post reported, citing a person briefed on the planning who wasn’t authorized to disclose details. Brady said he had to make changes to keep his upcoming bill in line with rules Republicans need to abide by if they hope to pass the measure through the Senate without Democratic support, according to the report. Brady added he hopes to make changes during negotiations with the Senate at some point to make the cuts long-term, but at this time he is unable to propose a permanent cut, the paper said. In citing the market pullback, analysts at GKFX said, “This implies that a tax proposal with a temporary corporate cut will revert back to the original 35% tax rate after a decade. President Trump cited previously that this temporary cut proposal would limit its ability to spur economic growth.” The slump in equities dragged the greenback sharply lower, the analysts noted. Futures for the Dow Jones Industrial Average [S: YMZ7] fell 14 points, or 0.1%, to 23,358, while those for the S&P 500 index gave up 1.80 points, or 0.1%, to 2,573. Futures for the Nasdaq-100 index [S:NQZ7] lost 10.25 points, or 0.2%, to 6,230.25. The S&P 500 and Dow industrials hit intraday records during Wednesday’s session and ended higher, a few points shy of their all-time closing highs.
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