Trump Weighs Weakening Obama Rules to Curb Corporate Inversions

[mahatmakanejeeves]

Source: Bloomberg

Politics
Trump Weighs Weakening Obama Rules to Curb Corporate Inversions
By Allyson Versprille, Isabel Gottlieb, and Laura Davison
October 8, 2019, 3:20 PM EDT Updated on October 8, 2019, 5:33 PM EDT

-- Change would narrow regulations on overseas tax breaks
-- Republicans say rules aren’t necessary after 2017 tax overhaul

Treasury Department officials are considering rolling back a tax rule aimed at preventing American companies from moving money offshore to avoid U.S. taxes, according to several people familiar with discussions.

The Treasury is looking at regulations intended to prevent American firms from lowering their U.S. tax bills by shifting income to their offshore branches that they can loan to their domestic branches and deduct the interest off their Internal Revenue Service bills. The department is also contemplating repealing them entirely to replace them with something more business-friendly.

The move could make it easier for companies to use accounting tactics to minimize their U.S. earnings and inflate their foreign profits, which are frequently taxed at rates lower than the current 21% domestic corporate levy. The existing regulations were aimed at stopping U.S. companies from moving their headquarters to a lower-tax country, known as a corporate inversion.s

Modifying the regulations, commonly referred to as the debt-equity rules, would also count as one of President Donald Trump’s favorite kinds of policy: Reversing a regulation introduced in the final days of President Barack Obama’s administration.
....

Read more: https://www.bloomberg.com/news/articles/2019-10-08/trump-weighs-weakening-obama-rules-to-curb-corporate-inversions

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Hat tip, Joe.My.God:

Mnuchin May Gut Obama Rule On Offshore Tax Havens

https://www.joemygod.com/2019/10/mnuchin-may-gut-obama-rule-on-offshore-tax-havens/

[mr_lebowski]

1. Kept this one in his back pocket to delight the knuckle-draggers when the chips were down ...

On top of that, should be good for a few 10's of Millions into the ol' campaign fund!

[abqtommy]

2. tRUMP's hatred of all things Obama is a proof of what an effective and popular leader

President Obama was/is.

[politicaljunkie41910]

3. Do you think he puts HIS money into campaign funds when he can use other people's money????

The only charity or campaign he donates to is his self.

[JohnnyRingo]

5. Actually, I think he'll keep this one on the down low.

This is strictly a windfall for his big donors now when he really needs them. I don't think his base would see raining $100 bills on the swamp as a benefit. Undoing something Obama did is just a personal bonus.

[JohnnyRingo]

4. I read that title wrong the first time

I thought Trump was going to weaken an Obama rule, and therefore he would curb corporate inversions. 'bout had a heart attack.

Hell no! He's worried that Obama was stopping the Invisible Hand Of The Free Market from stashing corporate money off shore. Can't have that and MAGA at the same time.