President Donald Trump will sign three documents Friday to advance his administration’s push to reduce tax and regulatory burdens, including a measure that could rollback Obama administration efforts to prevent U.S. companies from shifting operations overseas to avoid taxes, administration officials said late Thursday.
One executive order to be signed at the U.S. Treasury will direct Treasury Secretary Steven Mnuchin to review all tax regulations the department issued last year to examine whether any impose excessive financial burdens on U.S. taxpayers or add complexity to the tax code.
Trump on Government Shutdown and Health-Care Reform
At a joint news conference with Italian Prime Minister Paolo Gentiloni on Thursday, President Donald Trump spoke about plans to amend the Affordable Care Act and a needed funding deal to avoid a government shutdown next week. Photo: Jim Watson/Agence France-Presse/Getty.
The review could cover regulations the Obama administration issued last year to crack down on inversions, in which U.S. companies take up foreign addresses through mergers with other firms to cut their tax bills. The Obama administration couldn’t convince Congress to take action against inversions. Instead the Treasury issued sweeping rules to limit such practices.
The government estimated the tax rules would allow the Internal Revenue Service to collect between $461 million and $600 million annually. The biggest impact would hit 6,300 companies, according to the government, that make up 0.1% of corporations but report more than half of corporate net income and nearly two-thirds of corporate interest deductions.
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