A breakdown of the US tax draft released - ANZ

Analysts at ANZ noted that the market’s reaction to the GOP tax plan was fairly muted, with few surprises. 

Key Quotes:

"Homebuilder shares were the biggest mover due to a halving of the cap on mortgage interest deductions for new homes to $500k from $1m. The top individual tax rate would remain at 39.6%, but the plan lowers the corporate tax rate to 20%, with no discussion of phasing in.

Business income tax is to be cut to 25%, with the safeguards on “pass through” to prevent tax avoidance not popular with the largest small business lobby, whose president said that they are unable to support the bill. A tax of up to 12% is proposed for accumulated offshore earnings, perhaps higher than expected, while rebates for local/state taxes were reduced. The 401(k) scheme is not proposed to be changed. Trump said there will be a tax cut by Christmas; others are sceptical, with a lot of hurdles to clear."