Asia stocks firm as markets mull Trump's taxes, Japan report

It has been less than a month since the Coalition won a bruising battle over reducing tax for businesses with turnover of up to $50 million. Officials still called it the "biggest tax cut" in USA history that stands to benefit businesses, the middle class and certain high-earning individuals. There were no definite timelines and the question remains on how much will the Federal budget deficit be impacted due to the tax cuts. "I would never, ever bet against this president".

The White House's presentation will be "pretty broad in the principles", said Marc Short, Trump's director of legislative affairs.

"Australian companies will start thinking about what they will do over the next couple of years, and if there is no clear progress - particularly for larger companies which are on current arrangements in Australia are set to retain the current 30 per cent rate - if there's no change on that front, then I think you'll start to see larger companies in Australia progressively considering what they will do", he said.

The president's proposal marks a rehash of an economic theory popularized in the 1980s.

Asian shares ticked down from near two-year high on Thursday after a long-awaited US tax plan failed to inspire investors, though sentiment remains supported by global growth prospects and receding worries about political risks in Europe. This expected surge in growth, in theory, would be enough to keep the federal budget deficit from shooting upward.

Most economists forecast that a modest tax-cut package - smaller than Trump's - is far more likely to become law. The 20-percentage-point cut to corporate tax rates alone would add significantly to the national debt. With the pass-through rate dropped to 15%, those taxpayers could enjoy an enormous tax cut.

Which ones? "We have to have that discussion", Collins said.

Thanks to Trump, Republicans, including the GOP candidate in the Georgia 6th Congressional District special election, are going to be asked whether they support it.

Meanwhile, Trump's plan would cut the top corporate income tax rate from 35 percent to 15 percent.

While corporate tax changes are a major issue here, much of the focus in the United States plan was on individuals, including scrapping death duties and cutting income tax rates.

Trump's tax plans "will affect Europe more than Asia", said Louis Kuijs, head of Asia analysis at Oxford Economics in Hong Kong.

Senate Democrats say his plan tilts its benefits to the wealthy, including Trump himself.

Mark Tuscherer, whose company designs websites and apps, would like to use possible tax savings for a hire, but plans to wait and see how his business is doing if and when lower rates take effect.

The comment came as the secretary briefed reporters on the president's new proposal to overhaul taxes. Ron Wyden, or OR, ranking Democrat on the Finance Committee.

On the other hand, eliminating the federal tax deduction for state income taxes is a good idea.

He said: "The president has no intention".

Mnuchin echoed similar sentiments from Wednesday's unveiling, saying that the objective is focused on tax simplification.

Big U.S. companies have almost $1.8 trillion in cash stockpiled overseas, according to Moody's Investors Service.

The proposal has yet to be vetted for its precise impact on top earners, as several specifics are still being determined. Officials said they hoped to slash corporate taxes to 15 percent from 35 percent, but specifics are still to be negotiated.

At the same time, Trump is proposing a reduction in the top rate on ordinary income to 35% from 39.6%. Mnuchin said the change for small business owners - a group that under the current definition could include doctors, lawyers and even major real estate companies - would be done in a way that would ensure wealthier Americans could not exploit the change to pay less than intentioned in taxes.