News

Trump Administration Rolls Back Obama-Era Rules Stopping Businesses From Moving Abroad To Lower Taxes

President Donald Trump‘s administration announced Thursday that it would scale back rules implemented under Barack Obama that were intended to stop American businesses from relocating abroad to lower their tax burdens.

Treasury Department officials said the regulations are unnecessary because of alterations created as part of the Republican tax plan Trump signed into law in 2017. The overhaul cut taxes for U.S. companies and contained provisions designed to promote international investments like mergers with foreign organizations.

“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 hard-working Americans, and protect the U.S. tax base,” Treasury Secretary Steve Mnuchin said in a press release, in which he added that the 2017 tax law “leveled the playing field for American businesses.”

Subscribe to our free weekly newsletter!

A week of political news in your in-box.
We find the news you need to know, so you don't have to.

SLIDESHOW: TOP DEMOCRATS RUNNING FOR PRESIDENT IN 2020

The Obama administration had first introduced the rules regarding corporate inversions abroad in April 2016, citing Pfizer’s $150 billion purchase of Dublin-based drug maker Allergan. The Treasury Department at the time also moved to stop earnings stripping, a practice that involves American subsidiaries borrowing from their parent companies abroad and using the interest payments on these loans to offset earnings. This expense is not logged on financial statements but reduces taxes. Obama’s White House pushed to curb this effort by classifying it as stock-based rather than debt-based, thus scrapping the interest deduction for American businesses.

Many experts quickly noted that there is little evidence to show that the 2017 tax law has led to a sharp decrease in outsourcing of American products, services and jobs to lower-cost nations. Several Democratic lawmakers, including Sen. Ron Wyden (D-Oregon), condemned the Trump administration’s roll-back of the Obama-era rules regarding inversions.

 

Like
Like Love Haha Wow Sad Angry
Pablo Mena

Writer for upolitics.com. NY Giants and Rangers fan. Film and TV enthusiast (especially Harry Potter and The Office) and lover of foreign languages and cultures.

Recent Posts

Former Sen. Sherrod Brown To Run For Ohio Senate In 2026, Boosting Democrats’ Hopes Of Retaking Chamber

Democrat Sherrod Brown is expected to run for Senator of Ohio in 2026, attempting to…

45 mins ago

Putin Deploys 100,000 Troops Across Ukranian Frontline Days Before Meeting With Trump

Days before Russian President Vladimir Putin is set to meet with U.S. President Donald Trump,…

60 mins ago

Trump Nominee For Labor Statistics Commissioner E.J. Antoni Suggests Suspending Monthly Jobs Report

E.J. Antoni, who was recently nominated by President Donald Trump to lead the Bureau of…

3 hours ago

MAGA Rep. Cory Mills Embroiled In ‘Revenge Porn’ Case With Ex Miss United States Winner Lindsey Langston

Lindsey Langston, the 2024 winner of Miss United States and a Florida Republican state committee…

22 hours ago

Texas A.G. Ken Paxton Asks Court To Jail Former Rep. Beto O’Rourke For Fundraising For Texas Democratic Legislators

On Tuesday, Texas Attorney General Ken Paxton asked a judge to jail former Rep. Beto…

23 hours ago

Trump Envoy Steve Witkoff Accused Of ‘Damaging Incompetence’ For Confusing Ukraine’s Regions In Putin Talks

Steve Witkoff, President Donald Trump’s special envoy, is being criticized for “damaging incompetence” during discussions…

23 hours ago