Could US corporate tax reform be a boon for the USD? In an event held at the London School of Economics yesterday US Treasury Secretary Lew argued that the US currently runs a significant infrastructural deficit and that investment is required to bring the US up to scratch over the coming years. In particular he highlighted the impact of potential reforms to the US tax code, especially for corporate taxes.
The argument is that any changes could provide a significant windfall to the US Treasury which could be subsequently spent on infrastructure investment. This would be a boon for the USD from two perspectives. First, monies which are currently held abroad would be repatriated to the USD whilst infrastructure spending would inevitably lead to better growth metrics in the US, which by corollary will benefit the USD.


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