US Treasury's Mnuchin urges IMF to enhance FX surveillance

Jane Richards
April 23, 2017

The administration presents the review as a way to make the tax code less complex for American taxpayers, citing the growing list of line items on the individual income-tax form.

President Donald Trump said earlier Wednesday that he would release new information about his plan to overhaul the tax code on Wednesday, a sign that he is trying to accelerate one of his most ambitious campaign promises even though key specifics. "They're too complicated. This regulatory reduction is the first step toward a tax reform that reduces rates, provides relief to our middle class, and lowers our business tax, which is one of the highest in the world and has stopped us from so much wealth and productivity", Trump said.

One memo will order Mnuchin to review a component of the law that allows federal regulators to liquidate failing financial firms during an economic crisis if those companies are large enough that their collapse would pose a threat to the entire US economy.

If Trump makes his announcement on Wednesday, it will come just days before the current government funding bill expires on April 29, at which time there could be a partial government shutdown. Since taking office, the president has suggested that he wants to enact the deepest cuts to individual and corporate tax rates in history. "The process has begun, long ago, but it really formally begins on Wednesday".

"The objective of the orders is to make clear what the president's and the administration's priorities are and to signify the importance of these issues to the American people", Mnuchin said.

"W$3 e will outline our broad principles and priorities", the official said.

Wall Street, which tends to celebrate tax cuts, barely reacted - the Standard & Poor's 500-stock index was down 0.3 per cent on Friday.

Mr Trump insisted that his plans were on track and that his strategy to remake the economy would change history. In the chaotic Trump administration, staffers are "blindsided" by executive orders, officials regularly release contradictory statements and the president himself is reportedly not always fully aware of major personnel shifts.

"From our perspective, it is a direction that is dramatically backwards on financial stability", said executive director of Americans for Financial Reform Lisa Donner. "This has to do with the complexity of tax regulations". Those include efforts to clamp down on "corporate inversions" - in which United States companies merge with foreign companies to take advantage of lower tax rates overseas. Instead, Trump will instruct regulators to reexamine existing rules with an eye to rescinding them.

Other reports by VgToday

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