President Donald Trump on Friday, April 21 2017 ordered a comprehensive review of Democrat-era tax rules written to discourage U.S. companies from relocating overseas to cut their tax bills. He therefore promised to make a big announcement about tax reform next week.
“We’ll be having a big announcement on Wednesday having to do with tax reform. The process has begun long ago, but it really formally begins on Wednesday,” Trump said during a visit to the U.S. Treasury Department.
“The president was saying what we’ve been saying all along, that he wants to do tax reform as quickly as possible while still doing it right,” added a White House official.
There are contemplations about this promise because this was not his first time of making a promise and gallantly failing. For instance in February, President Trump promised to release a “phenomenal” tax plan within a few weeks, without offering details. But none emerged.
As usual he got the support of almost all the Republican public office holders.
“I appreciate the president’s leadership and strong commitment to comprehensive tax reform. We, the Republican members, are ready to work with President Trump and his team,” House Ways and Means Committee Chairman, Kevin Brady said in a statement.
During the 2016 election campaign, It could be recalled that Trump in his 2016 election campaign promised to issue a plan that advocate for deep cuts in tax rates for individuals and corporations, a depreciation in the number of tax brackets to four from seven, repeal of the estate tax, an offshore profits repatriation tax holiday for multinationals and a cap on the deductibility of business interest.
Hence, President Trump on the 21st of April 2017 signed an executive order directing the Treasury to review tax-related regulations adopted over the past 18 months under former President Barack Obama.
“Inversions, rules against tax-driven foreign corporate deals, are one of the significant things and one of the things we would be looking at,” said a staff member of Treasury while responding to the newsmen.
