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Published: Sat, May 06, 2017
Economy | By Melissa Porter

In Latest Populist Betrayal, Trump Executive Order Unchains Wall Street Greed

In Latest Populist Betrayal, Trump Executive Order Unchains Wall Street Greed

Mnuchin told reporters that Trump's principles will include a "middle income tax cut", and cuts in business taxes as well as "simplification" of the code so most Americans can file taxes on a postcard.

Trump did not provide any details about his new tax plan - just that it would be "bigger I believe than any tax cut ever" and that he would announce it next "Wednesday or shortly thereafter".

Trump also signed an executive order directing Treasury Secretary Steven Mnuchin to review "all significant 2016 tax regulations to determine if they impose an undue financial burden on taxpayers, are needlessly complex, create unnecessary requirements, or exceed what's allowed under law".

Mnuchin had suggested earlier that a plan was far off, having pushed his tax reform goals from August to the end of the year.

Even that timeline would test lawmakers, one source said this week. His staff has also been working on finalizing a tax policy plan that Mnuchin said would be completed "very soon".

President Donald Trump's promised "big announcement" next week on overhauling the United States tax code, a top campaign pledge, will consist of "broad principles and priorities", an administration official said on Saturday. The process can be contentious - economists disagree on the best ways to predict such effects - but Mnuchin has repeatedly emphasised its importance to the Trump plan. He has at times expressed support for a plan drawn up by House of Representatives Republicans, but his views are unclear on a section that deals with taxing imports. They have yet to release legislation fleshing out the details of the blueprint, which they put out last June.

However, he expected a corporate tax cut and some move to encourage the repatriation of profits by USA multinationals, a development that would affect U.S. multinationals in Ireland. "Both of those rates will come down by 43 percent", he said. For passthrough companies that rate is now wedded to the individual rates.

Former Federal Reserve Chairman Ben Bernanke has defended the Dodd-Frank provision, saying elimination would be a "major mistake".

The memo directs the Treasury to review the authority for 180 days, focusing on whether it exposes taxpayers to losses and encourages companies to take on more risk, or whether a revamped bankruptcy process would be preferable.

"We'll be having a big announcement on Wednesday having to do with tax reform", Trump said. He is clearly lukewarm about the idea, but mostly has criticized how it sounds.

Senior administration economic officials were caught off-guard by Mr. Trump's comments. "Adjustment means we lose".

And if Trump backs away from the controversial border-adjusted tax proposal, he risks damaging relations with Ryan, who's staked considerable political capital on the measure.

Such an approach would make passing permanent tax cuts impossible.

On Thursday, Trump used that word again when talking about U.S.

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