Tencent Financial and Economic News according to Bloomberg, the US Senate version of the budget resolution was passed, which is a key step in Trump's tax reform. The House and Senate tax committees plan to release draft legislation in early November.

This version of the resolution allows tax reform to add $1.5 trillion to the deficit over the next 10 years, and the US Senate passed the fiscal year 2018 budget by 51 votes to 49, clearing a major obstacle for Republican tax reform.

Earlier, US President Donald Trump told reporters at the White House that "I think we will succeed tonight" and that the Senate will pass the budget. "frankly, I think we have enough votes to pass subsequent tax cuts. "

As a result of the passage of the US Senate version of the budget resolution, the dollar index strengthened in the short term, rising to 93.31; the dollar against the yen rose nearly 25 points in the short term, above the 113th mark, and reached 113.01; the pound brushed its latest one-week low against the dollar to 1.3130; the dollar against the Canadian dollar refreshed two-day highs to 1.2498, approaching 1.25th; spot gold hit a daily low of 1285.49 US dollars per ounce.

Seven questions about Trump's tax Reform Plan

In September, US President Donald Trump and Republican congressional leaders unveiled a tax reform framework to push for a US tax reform bill. We are now entering the stage of drafting tax reform bills under this framework in the House of Representatives and the Senate.

Trump's tax reform plan is arguably the most closely watched plan since he took office, and it is widely believed that Trump's tax cuts will stimulate the economy, but there are also concerns that it will further increase the fiscal deficit of the already heavily indebted US government.

What impact will this tax reform bill have on the US economy and market? Can it be implemented smoothly? Huitong summarizes seven questions about Trump's tax reform bill to show you the true face of Trump's tax reform plan.

1. Will tax cuts increase the fiscal deficit?

Some Republicans in the Senate, especially Senator Bob Corker of Tennessee, oppose the tax cut. He expects the bill to increase the U. S. budget deficit by $4 trillion. By the way, Kirk was at odds with Trump earlier, and he made a lot of dissatisfaction with Trump's personal style and policies, saying thatTwitterThe remarks are not true.

In addition, Pennsylvania Senator Pat?Toomey and Texas Senator Ted Cruz both said the tax bill is not enough to stimulate economic growth.

two。 Does this bill bear the cost of tax cuts?

We may be able to get a glimpse of the framework for tax reform submitted by the Trump team. The bill is expected to abolish tax exemptions enjoyed by some central and local governments, which is expected to increase taxes by $1.3 trillion over 10 years, but this has met with opposition from Republican lawmakers in some regions that strongly use tax exemptions.

Gary Cohn, director of the National Economic Council, said that there was already a disagreement at the top of the Republican Party, and some people suggested that instead of abolishing the tax exemption policy directly, it would be better to add an upper limit to the tax exemption.

3. Is this tax cut temporary or permanent?

According to Senate rules, if more than half of the members so request, it can be mandatory that the deficit caused by tax cuts cannot exceed 10 years.

However, when Bush Jr. introduced tax cuts in 2001 and 2003, he took some temporary special measures to skillfully avoid this rule.

At present, some Republicans have said that the tax cut must be permanent in order to boost the economy.

4. Will the real estate tax be abolished?

Republican leaders have long sought to abolish the real estate tax. But Senator Mike Rounds of South Dakota says he doesn't want to abolish the tax altogether. Senator Collins has also been opposed to abolishing the tax.

5. How many benefits will it have for the rich?

Although Trump has repeatedly stressed that the tax cuts will not reduce taxes on the rich, judging from their proposed framework, in fact, it is the richest-the tax bill includes reducing tax rates, abolishing alternative minimum taxes (which can be understood as personal income tax for high-income earners), and sharply reducing tax rates for unlisted companies.

But of course, the bill also mentions that a nearly 35% personal income tax may be levied on the super-rich, but it is unclear whether this will happen. Orrin Hatch, chairman of the Utah Senate Finance Committee, mentioned that Trump had said he would not personally benefit from the tax, but Democrats scoffed at the idea and asked Trump to release his personal tax returns as soon as possible so that the public could check whether what he said was true or false.

6. Will American middle-class families have to pay more taxes?

Some Republicans are unhappy with the details of the framework on middle-class tax breaks. A survey conducted by the Utah Center for tax Policy found that under the framework, taxes for the middle class earning between $50, 000 and $150000 would increase by nearly 30 per cent.

7. What is the process of passing the tax bill?

According to the Constitution, tax bills must be drafted by the House of Representatives. But the Senate also needs to draft another version of the tax bill. After that, if there is no accident, enter the normal process-the so-called "normal process" is subject to hearings, debates, amendments and party support.