President Trump yesterday announced proposals for the highly anticipated US Tax reform and hailed an end to the taxation of non-US earnings. Trump proposed cutting the official corporate tax rate from 35% to 20%, whilst this fell short of the 20% cut promised in the election campaign markets and CEO’s in the US have taken the news positively. Treasuries in the US sold off on the news against a stronger dollar and small cap equity market which represents the US sector set to benefit most from a cut to the corporate rate. The proposed new 20% level ensures US corporates cease being the most heavily taxed market and instead pay a competitive tax rate just above that of the UK which is being hailed as a boon for US domestic companies. Both Republicans and Democrats are voicing concerns the new tax initiative lack specifics and fails to address how the White House plans to cover the shortfall from the drop in US corporate tax.