US: Hope for a tax cut has risen - Rabobank

Analysts at Rabobank suggest that while hope for a US tax cut has risen, President Trump’s initial plan to invest in infrastructure through a public-private partnership appears to be crumbling.

Key Quotes

“In a change of heart, he is reported to have said to lawmakers that public-private partnerships are more trouble than they are worth. On the bright side, this opens the door to a bipartisan infrastructure plan because the Democrats have never been enthusiastic about public-private partnerships. However, in combination with a large tax cut, federal investment in infrastructure would further increase the budget deficit. This would erode support among budget hawks in the Republican Party.”