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US banks cheer on tax reform

Banks are hopeful that the Trump administration might finally get something done.

US president Donald Trump talking tax in Indianapolis on Wednesday

Talking to senior executives of large and small banks across the US is to be reminded just how big a deal for them the tax reforms proposed by the Trump administration at the end of September are.

The American Bankers Association was, of course, quick to applaud the administration for its commitment to lowering taxes and to agree with its contention that lower rates will pay for themselves by growing the economy, creating jobs and so expanding the tax base and revenues.

This enthusiasm goes far beyond gratitude for the boost to banks’ own profits if a political deal can be hammered out to get a reduction in the corporate tax rate from 35% to 20% through both houses.

US corporate financiers have talked for years about the inhibiting impact of an overly complex tax code and the urgent requirement for a comprehensive overhaul that fears over the short-term boost in federal borrowing have delayed for so long.