Biden "Tax Floor" Proposal On Infra Deal Seen Bullish

Pres Biden offered a key concession to Republicans in infrastructure negotiations on Wednesday - by suggesting the creation of a 15% tax rate "floor" for businesses that pay little in taxes, the Washington Post reports. This would be in place of a proposal to raise the corporate tax rate to 28% from 21% currently, as a means of helping pay for a large infrastructure package.

• While the White House and Republicans still appear to be far apart on the size of new infrastructure spending ($1T vs ~$250B proposed by Republicans) among other issues, the news on the tax rate is seen as doubly bullish. Firstly, it reduces the chance of a large tax hike for many companies; secondly, it makes a bipartisan deal look more likely.
• Equities have largely erased the session's earlier losses, S&P eminis rising 0.5% since the headlines emerged.