Daily Management Review

Trump Orders Tax Rule Review, Sets U.S. Tax Reform Announcement


04/22/2017




Trump Orders Tax Rule Review, Sets U.S. Tax Reform Announcement
President Donald Trump has ordered an administration review of Obama-era tax rules written to discourage U.S. companies from relocating overseas to cut their tax bills and has also promised that a big announcement will be made about tax reform by next week.
 
"We'll be having a big announcement on Wednesday having to do with tax reform. The process has begun long ago, but it really formally begins on Wednesday," Trump said during a visit to the U.S. Treasury Department.
With no idea about what Trump's announcement might include, the news came as a surprise to lobbyists and congressional aides as the news was first reported in an Associated Press interview with Trump.
 
While he had offered absolutely no details, promises of the release of a "phenomenal" tax plan within a few weeks was made by Trump in February. However, nothing has been forthcoming from the U.S. President as yet.
 
The impending announcement could come later than Wednesday, reported Reuters quoiting a White House official. "The president was saying what we've been saying all along, that he wants to do tax reform as quickly as possible while still doing it right," the official reportedly added to the information.
 
The Republican tax chief in the House of Representatives gave a war reception to Trump's latest comments.
 
"I appreciate the president's leadership and strong commitment to comprehensive tax reform," House Ways and Means Committee Chairman Kevin Brady said in a statement.
 
Brady added that the panel's Republican members "are ready to work with President Trump and his team."
 
A number of tax reforms were proposed by Trump during the 2016 election campaign through an initial plan released by him. A cap on the deductibility of business interest, repeal of the estate tax, an offshore profits repatriation tax holiday for multinationals, a reduction in the number of tax brackets to four from seven, and deep cuts in tax rates for individuals and corporations, were initially proposed by the then presidential candidate. He later revised the number of tax brackets to three.
 
The plan partly resembled one developed by House Speaker Paul Ryan.
 
A review of tax-related regulations adopted over the past 18 months under former President Barack Obama by the Treasury was ordered by Trump as he signed an executive order to that effect.
 
"It's one of the significant things and one of the things we would be looking at," said Mnuchin when asked if that would include rules against tax-driven foreign corporate deals known as inversions.
 
The best vehicle that is available for eliminating what they say are tax incentives for U.S. companies to move their headquarters, manufacturing facilities and jobs overseas, for Trump and Republicans in Congress is the tax reform.
 
(Source:www.reuetrs.com) 






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