Will investment boom follow US tax bill?

The largest tax cut bill introduced by US President Donald Trump and passed by the Senate by a 51-49 margin on Saturday will remodel multinational taxation rules and temporarily reduce personal income tax. The proposal to reduce the corporate tax to 20 percent, if implemented, will have profound global economic repercussions, as it could lead to a "tax reduction war" among economies, especially among Western countries that have similar corporate taxation structures.

The bill aims to lower US companies' tax burden and sharpen their competitive edge in the global market. It is also expected to help many global corporations, including those from China, to invest and operate in the United States. And it could encourage foreign companies which are already operating in the US to consolidate their presence there.

In the short term, the proposed tax cut will benefit small and medium-sized businesses in the US, and thus increase employment and stimulate economic growth.