Dec 19 (Reuters) - The Republican-controlled U.S. House of Representatives approved sweeping, debt-financed tax legislation on Tuesday, sending the bill to the Senate, where lawmakers were due to take up the package later in the evening.
KEY POINTS: The biggest overhaul of the U.S. tax system in more than 30 years could be signed into law by President Donald Trump as soon as Wednesday, if both chambers of Congress approve it. The bill passed the House by a vote of 227-203, overcoming united opposition from Democrats and 12 Republicans who voted against it.
COMMENTS: OMAIR SHARIF, SENIOR U.S. ECONOMIST, SOCIETE GENERALE, NEW YORK This seems like its a done deal especially if Corker and Collins end up on board on the Senate side. They will get across the finish line by Christmas after moving the goal post a number of times. "I think for more than a few days now, this was likely going to pass. This has been baked in the cake with the markets. They have been expecting this for a long time. Its a few days before Christmas, so trading is quite thin. I wouldnt read too much into any market reaction. The real telling thing for this is the second half of next year, whether this actually lifts growth above 3 percent on any sustained basis on capital spending and consumer spending. Its more a political achievement than an economic achievement.
MARKET REACTION: Stocks trimmed losses slightly, but then dipped back. The S&P 500 Index was last down 0.2 percent. Treasury yields hovered near session highs and the dollar held its gains against the yen.