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Trump to move on tax reform

08 Mai 2017

Trump's White House doesn't yet have an answer on one of the most basic principles of a tax plan: whether the plan would add to the federal debt or be revenue neutral.

Trump's contention for scrapping the oversight is that it stifles corporate growth and, by extension, weakens the economy. "Under static scoring, there'll be short-term issues", he noted.

"We have been working extensively from the day I've been confirmed", he said.

Mr. Trump also signed two presidential memoranda Friday ordering Treasury to review what he called "damaging" Dodd-Frank regulations and to review the impact of the law's "orderly liquidation authority (OLA)", which Republicans have called a bailout for big banks.

► Review significant tax regulations issued in 2016 and 2017 that are overly complex and "impose an undue financial burden" on taxpayers. Among those efforts were regulations to prevent moves like "earnings-stripping", in which a USA subsidiary borrows from a parent company and uses the interest payments on the loans to offset its earnings, to make inversions less attractive financially.

The president directed Treasury Secretary Steven Mnuchin to review regulators' authority to unwind a bank on the brink of failure and to label nonbank firms - insurance companies, private equity firms and hedge-funds - as risky institutions. "We've got 100 people in the tax department across the street at Treasury, and they are looking at everything".

The Treasury Department will not be able to use the provisions while the review is underway unless specifically approved by the president.

"We have taken unprecedented action to bring back our jobs and return power to our citizens - it's been taken away", he continued.

But Trump said it was part of Obama-era regulations "that fail to hold Wall Street firms accountable". "Maybe we end up with 17 1/2 percent".

The Trump administration has been expected to reduce the number of companies subject to SIFI-level policing.

Jens Weidmann, president of the Deutsche Bundesbank, said there was "very broad consensus at the meeting that we should work to continue the implementation" of financial reforms.

Critics, though, aren't buying it. The process can be contentious - economists disagree on the best ways to predict such effects - but Mnuchin has repeatedly emphasised its importance to the Trump plan.

Even that timeline would test lawmakers, one source said this week.

WASHINGTON:President Donald Trump on Friday promised a big announcement about tax reform next week and ordered an administration review of Obama-era tax rules written to discourage US companies from relocating overseas to cut their tax bills.

"So, go do it", Trump told Mnuchin. A portrait of Alexander Hamilton, the first treasury secretary, looked down.

But Trump claims the regulations have had the opposite effect, while also limiting access to credit for many Americans. Instead, they say, the president is attempting to pick off parts of the law, piecemeal.

Trump to move on tax reform