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Trump’s taxes suffer a dearth in details – dollar dips

Overpromise and underdeliver seems to be the modus operandi of the Trump Administration. Edging closer to the 100 days mark, Gary Cohn and Steve Mnuchin  unveiled a “once in a generation” tax plan. It came  five days after the  idea was first announced.

The  ideas in the plan seem quite ambitious indeed. Significantly lower taxes could make a huge difference in the economy and in the US debt pile.

However, the plan lacks details. After nearly one hundred in office that followed some 70 days in transition and lots more time on the campaign trail, the press received a one-pager. A dearth of details is not  a first for the Trump team, but still a disappointment for markets that were hyped by the news.

And there is another  problem: passing it. As we have seen with Trump-care, the Republican party is quite divided. There are moderates and extremists, caucuses and lots of special interests. Also, Donald Trump and Paul Ryan haven’t proved to  show the best of their leadership.

Will they succeed with the tax plan? Early indications show that they will first need to iron out the details.

USD slides

The US dollar was  rising against some currencies ahead of the hyped announcement. And when the one-pager came out, the trend reversed.

Here is how the stall in the greenback’s rise looks on the dollar/yen chart:

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.