The proposals are part of a wide-ranging plan to fire up the world’s top economy, which also includes ramping up infrastructure spending and wiping away business regulations.
“Under the Trump plan, we will have a massive tax cut for businesses and massive tax reform and simplification,” US Treasury Secretary Steven Mnuchin said at the White House.
Trump’s election in November sparked a surge in global markets as traders bet the proposals would fuel US growth.
But the president has already failed to push through a key healthcare reform — despite Republicans controlling Congress — and analysts say he could have trouble pushing through his tax agenda.
“Traders are viewing (the plan) as little more than a road map, rather than the much ballyhooed ‘big announcement’, because the statement did not provide any comprehensive details,” said Stephen Innes, a senior trader at OANDA.
“While the essence of the proposal is reflationary… the argument remains for, and further clarity is required on how, the tax cut’s deficit ramifications will be offset. Fiscal reforms present a real revenue drain amidst disquieting concerns of the current trajectory for the US deficit.”