Trump to announce important tax reform next week
- Author: Zachary Reyes Apr 23, 2017,
Apr 23, 2017, 8:24
"The process has begun long ago but it really formally begins on Wednesday", Trump said at the Treasury Department on Friday.
Mnuchin said the global economy continues to exhibit large and persistent external imbalances, "which contribute to the sentiment that the existing worldwide monetary and trading system does not benefit all".
According to ABC News, Trump signed "two presidential memoranda on the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, which former President [Barack] Obama signed in response to the 2007-2008 financial crisis".
Another memorandum signed Friday orders the Treasury to review the Financial Stability Oversight Council's procedure in designating banks "too big to fail".
While the two memos indicate that revisiting the rules remains a priority, they overlap with an earlier executive order the president signed in February directing a review of all financial rules.
Both measures will be suspended while they're under review.
U.S. Treasury Secretary Steven Mnuchin said on Saturday that the Trump administration's tax reform plan would produce some "short term issues" when viewed under traditional "static" budget analysis rules.
One of the most sweeping tax regulations imposed in 2016 was written by the Obama administrations Treasury Department and it made it much harder for companies to use a process known as inversion to incorporate overseas in places like Ireland so that they could avoid paying US taxes.
"If our markets are open, there should be a reciprocal nature to other people's markets", Mnuchin said Saturday.
"We look to the International Monetary Fund to highlight where surplus countries can more forcefully contribute to support symmetric adjustment in pursuit of a fairer global system", he said.
One order temporarily freezes a portion of Dodd-Frank known as the Orderly Liquidation Authority, which gives the federal government broad discretion in making loans to failing financial institutions.
"We're looking for reforms that will pay for themselves with growth", Mnuchin said. "We're going to determine whether we think they're needed in the tax code, or whether they're unnecessary and the tax burden and complexity is too much, and if we think it's too much, we will make a recommendation to the president". He would not provide details of the plan, saying only that the tax cuts will be "bigger I believe than any tax cut ever".