US: House Ways And Means Committee Approves Republican Tax Bill
May-14 12:45
The House Ways and Means Committee has approved the Republican tax bill in a 26-19 vote, along party lines, following a 17-hour markup. The other two crucial committee markups - Agriculture and Energy and Commerce - are set to resume today with safety net programmes - Medicaid (E&C) and SNAP (Ag.) - the focus of debate.
- Punchbowl reports that the final Ways and Means markup failed to resolve the dispute between blue-state Republicans and GOP leadership over the cap on State and Local Tax deductions (SALT).
- House Speaker Mike Johnson (R-LA) is aiming to assemble the final ('One Big Beautiful Bill') package in the House Budget Committee on Friday before holding a full vote on the House floor next week. Johnson can likely only lose three Republican votes in a House ballot, meaning that SALT Republicans can torpedo the bill if they haven't received sufficient assurances from GOP leadership. Likewise, conservatives could rebel if they see the package falling short on spending cuts. So far, Johnson has outperformed expectations on the floor, so the baseline scenario is that he will successfully force the bill through.
- Senate Finance Committee Chair Mike Crapo (R-ID) indicated to reporters yesterday the Senate will revise the package they receive from the House: “We are, both the House and the Senate, trying to stay as close as we can on policies. That being said, the House is going to have a different work product than we end up with here.”
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
EGBS: Rally In Major Futures Extends; BTPs Eyeing Key Resistance
Apr-14 12:44
Major EGB futures have continued to grind higher through the course of the session, with BTPs narrowing the gap to resistance at 119.07 (April 4 high).
- Currently +88 ticks today at 118.98, clearance of the April 4 high would be a bullish reversal development and expose 119.31, the March 4 low. This would mark a full reversal of the sell-off seen following German Chancellor Merz’s landmark fiscal announcement.
- Friday’s ratings upgrade from S&P (covered in more detail earlier) continues to drive BTP outperformance against EGB peers, with the 10-year BTP/Bund spread now 5.5bps tighter on the session at 118.5bps.
- OAT futures are +57 ticks at 124.50, with the April 7 high at 124.87 presenting initial resistance. The 20-day EMA at 123.24 provides support.
- Yesterday, French finance minister Lombard noted that the Government needs to find E40bln of savings to reach its 2026 deficit target of 4.6% GDP. He also expressed a preference for the government’s high-earner tax to become permanent.
- Although French political risks have taken a backseat since PM Bayrou was able to pass his 2025 budget, the administration remains in a precarious position. The need for further fiscal consolidation in France, alongside fallout from RN Leader Le Pen’s legal troubles, may place stress upon the fragile agreements Bayrou has formed to remain PM.
SONIA: Call spread buyer
Apr-14 12:42
SFIK5 95.95/96.10cs, bought for 3.75 in 4k.
MNI: CANADA FEB WHOLESALE SALES -2.7%; EX-AUTOS +1.0%
Apr-14 12:30
- MNI: CANADA FEB WHOLESALE SALES -2.7%; EX-AUTOS +1.0%
- FEB WHOLESALE INVENTORIES +1.6%: STATISTICS CANADA
- CANADA FEB WHOLESALES EX-PETROLEUM/OILSEED/GRAIN +0.3%
Related by topic
US
