Washington — Business Roundtable today lauded President Trump’s action requiring the review of significant tax rules that impose an undue burden on U.S. taxpayers and job creators. The U.S. Treasury’s 2016 rules on the tax treatment of debt and equity under Sec. 385 of the Internal Revenue Code fall within the rules the Treasury Department will review. In February 2017, Business Roundtable identified these debt/equity rules as one of our top regulatory concerns that harm economic growth.
“This action is a welcome sign of the Trump Administration’s commitment to listen to the business community’s concerns about excessive burdens and unintended consequences resulting from overly broad regulations,” said Mark Weinberger, Global Chairman and CEO of EY and Chair of the Business Roundtable Tax and Fiscal Policy Committee.
“Business leaders have consistently raised concerns about the disruption that Treasury’s Sec. 385 rules would cause U.S. companies and the economy,” Weinberger said. “Business Roundtable urges the Trump Administration to withdraw Treasury’s 2016 debt/equity regulations, consistent with the Administration’s goal to reduce regulatory burdens.”
“While removing unnecessary regulatory burdens is a step in the right direction, comprehensive tax reform is the ultimate fix for an outdated tax system that hamstrings the U.S. economy and job creation,” he continued.
“Today’s announcement is a positive sign that tax reform and a smarter approach toward regulation will remain at the forefront as the Administration, Congress and the business community work to revive growth and employment.”
For more information on the Business Roundtable efforts to create more momentum for America, visit businessroundtable.org.