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Treasury Secretary Steve Mnuchin, Former Goldman Sachs Executive Says Obama-Era Tax Cuts Are Obsolete

Treasury Department officials are reportedly rolling back a tax rule issued under former president Barack Obama’s administration. The rule sought to prevent American companies from moving money offshore in an effort to avoid US taxes.

The Treasury issued final regulations that eliminated documentation requirements dating back to Obama. The department will propose regulations in the future changing other parts of the offshore tax rules.

The Treasury Department doesn’t believe the rules are necessary any longer because of a 2017 tax law enacted under president Donald Trump.Treasury Secretary Steve Mnuchin, who formerly served as a Goldman Sachs executive, stated that the 2017 GOP tax law made them “obsolete,” because it reduced the corporate tax rate.

“Because tax cuts made our business environment more competitive, we are now able to remove regulatory burdens that have been rendered obsolete, further reduce costs for job creators and hardworking Americans, and protect the U.S. tax base,” Mnuchin said.

The plan “only provides an opening for corporations to again dodge their taxes,” said Sen. Ron Wyden , the top Democrat on the Senate Finance Committee. “The corporations that got a massive taxpayer handout are getting another gift from Donald Trump.”

He said the Obama administration had essentially shut down inversion transactions whose only purpose is to help big multinational corporations move overseas to avoid paying taxes.
“Rules preventing the offshoring of corporate profits should be strengthened, not weakened.”
The Treasury Department’s proposal was outlined detailed in a policy guidance.