Donald Trump to sign measures to review financial regulation
- Author: Wendy Palmer Apr 22, 2017,
Apr 22, 2017, 1:46
"Trump to make first visit to Treasury Dept. tomorrow to sign two financial-related executive orders", the CNBC tweet said.
But a White House official gave some wiggle room on the date, noting that Trump said in the AP interview that the plan would be released on Wednesday or soon after that.
"This is a big priority for the president", said Mnuchin, who described the upcoming reform plan as "sweeping" and something that would spur "a lot of economic growth".
House Republicans are also working on plans to vote to repeal the Affordable Care Act next week, and Congress must vote by Friday to continue funding the government or there will be a partial shutdown.
Robert Willens, an independent tax consultant, said reversing these rules would be a gift to Wall Street bankers and lawyers who have complained that global deal making has been hampered by the regulations.
That order could be aimed at rules enacted by the Obama administration to crack down on so-called inversions in which companies shift their headquarters overseas to reduce their US tax bills.
"Tax reform that adds to the 10-year debt projection is pretty much dead on arrival with most Republican members of Congress".
One mandates a review of the process for identifying non-bank financial institutions as "systematically important financial institutions" and temporarily halts such designations, and the other puts a temporary stop to the use of "orderly liquidation authority" to unwind troubled financial institutions and calls for a review.
The Trumpian tax reform therefore looks like a gamble where stakes are high, given that the United States government is already nearly $20 trln in debt.
"I think this concern is why Trump ordered a review-to delay actually doing something", he said.
"President Trump is absolutely committed to make sure taxpayers are not at risk for government bailouts for entities that are too big to fail", he said. Both reviews are to be completed within 180 days.
The Trump administration said it will release a tax reform bill next week that, if passed, would completely change the complex tax code. It also asks the secretary to look at whether giving regulators such powers would create costs for taxpayers or lead banks to take excessive risks.
The US official said the administration's key focus is around fair and balanced trade and investment, but he steered clear of the tensions among finance officials gathered for the semi-annual meeting of the International Monetary Fund due to the worrisome protectionist rhetoric out of Washington. This massive tax reform will be the first since Ronald Regan cut taxes in 1986 - the Bush, Jr. -era tax cuts were undertaken without a significant adjustment of the tax code.