Trump Order Takes Aim at Tax Regulations Imposed by Obama -
By ALAN RAPPEPORTAPRIL 21, 2017
WASHINGTON — President Trump ordered his Treasury Department on Friday to review measures put in place by the Obama administration, setting the stage for a rollback of regulations
that were intended to curtail corporate tax evasion and prevent another financial crisis.
Senator Sherrod Brown, Democrat of Ohio, assailed Mr. Trump for trying to undermine rules
that were put in place to protect the economy: “Any actions to undermine these protections encourage Wall Street’s risky behavior and leave taxpayers and our economy exposed to another catastrophe.”
Mr. Brown said that Mr. Trump appeared to be breaking a campaign promise by making it easier for companies to use inversions.
“These actions took away some of the economic benefits of inverting and helped slow the pace of these transactions,
but we know companies will continue to seek new and creative ways to relocate their tax residence to avoid paying taxes here at home,” Jacob J. Lew, then the Treasury secretary, said at the time.
Treasury is also reviewing the Financial Stability Oversight Council, which designates financial institutions as “systemically important,”
better known as “too big to fail.” It requires them to hold more capital in reserve in the event of financial emergencies.
The Treasury Department “reinterpreted longstanding tax principles in a uniquely selective manner designed specifically to destroy
the financial benefits of these types of transactions,” AbbVie said when announcing the demise of its Shire transaction.
