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Stocks, Bond Yields Tumble On Disappointing 'Gradual' Tax Cut Headlines

Having continued Friday's melt-up as soon as US equity markets opened this morning, headlines from Washington that the corporate tax cuts may be enacted "gradually" reaching 20% in 2022.

As Bloomberg reports, House tax writers are discussing a gradual phase-in for the corporate tax-rate cut that President Donald Trump and Republican leaders want -- a schedule that would have the rate reach 20 percent in 2022, according to a member of the chamber’s tax-writing committee and a person familiar with the discussions.

The phase-in plan has been considered, but may not yet be final, said a member of the House Ways and Means Committee, who asked not to be named because the discussions are private.

Under that plan, the rate may be reduced from its current 35 percent rate by three percentage points a year starting in 2018.

This is clearly not what the 'Veruca Salt' market demands... "I want it all.. and I want it now."

This follows the SALT elimination over the weekend. As Bloomberg reports, bowing to concerns from Republican House members in high-tax states, the chamber’s chief tax writer said he’ll preserve a federal income-tax break for property taxes.

“At the urging of lawmakers, we are restoring an itemized property tax deduction to help taxpayers with local tax burdens,” House Ways and Means Chairman Kevin Brady said in a statement Saturday afternoon.

The announcement was welcomed by Representative Chris Collins, a New York Republican, who said the compromise would address the need “to protect middle income working families” in states like his own. He predicted it would assuage Republicans’ concerns.

And that sent stocks lower...

 

Even FANG Stocks are rolling over...

 

And 10Y Yields are at one week lows...