Bank stocks posted steep gains in early trading on Wall Street as the Treasury Department said it would keep billions of dollars in taxes paid by US banks onshore, and unlike oil, gasoline and other energy products, the tax policy move is subject to a 60-day period of comment from the industry.
The Republican tax reform legislation unveiled in September aims to lower the corporate tax rate to 21 percent from 35 percent, and will remove a regulation known as the “pass-through” rule that allows businesses to receive federal income tax only from the income of privately held companies.
Experts have worried that, without the pass-through rule, some companies would stop filing taxes as companies and instead would form partnerships and pass through income to themselves.
Officials said the tax changes would not affect the $2.5 trillion Treasury surplus that they expect to have by the end of the fiscal year.
The Treasury also proposed allowing banks to write off $25 billion in business investment in their quarterly financial statements.
Here are the latest tweets from main street on Wall Street’s interest rate hike, and the announcement of government regulation of banks: