The Trump administration is embarking on new efforts to study and possibly dismantle some of President Obama’s tax and financial regulations. (April 21)
WASHINGTON — President Trump aimed to dismantle even more financial regulations with executive orders on Friday, directing Treasury officials to take another look at tax rules and oversight of “too big to fail” financial institutions.
In a signing ceremony at the Department of the Treasury, Trump once again signaled that he intends to roll back many of the sweeping regulations the Obama administration adopted in the aftermath of the 2008 financial crisis.
“We have taken unprecedented action to bring back our jobs and return power to our citizens. It’s been taken away. We’ve lifted one terrible regulation after another at a record clip, from the energy sector to the auto sector. And we have many more to go,” Trump said. “We’re here today to continue this great economic revival.”
The directives Trump signed Friday will:
► Review significant tax regulations issued in 2016 and 2017 that are overly complex and “impose an undue financial burden” on taxpayers.
“Such a big thing. People can’t do their returns. They have no idea what they’re doing. They’re too complicated,” Trump said.
But the order is more likely to target corporate taxes than individual returns. Among the most significant tax regulations adopted in the last year of the Obama administration were a clampdown on so-called “tax inversions,” which allow multinational corporations to get favorable tax treatment by merging with companies in lower-taxed countries.
“It’s obviously one of the significant things, and one of the things we’ll be looking at,” Treasury Secretary Steven Mnuchin told USA TODAY. “We’ve got 100 people in the tax department across the street at Treasury, and they are looking at everything.”
► Direct the Treasury Secretary not to use orderly liquidation authority to bail out insolvent financial institutions, reigniting the debate over a key provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. Critics have said that provision could actually allow banks to take more risks than they ordinarily would, and Trump wants to re-examine whether court-supervised bankruptcy would be a better way to wind down failing banks.
“It doesn’t sound like much, but it is,” Trump said on signing the directive. “That’s a biggie.”
Former Federal Reserve Chairman Ben Bernanke has been among those who are vocal supporters of the provision. Eliminating it “would be a major mistake, imprudently putting the economy and financial system at risk,” he wrote in an essay for the Brookings Institution in February, calling the…