A “disturbing” New York Times story published Monday detailed how President Donald Trump’s Treasury Department, led by former Goldman Sachs banker Steve Mnuchin, has quietly weakened elements of the 2017 tax law in recent months to make it even friendlier to wealthy individuals and massive corporations.
Lobbyists representing some of the largest corporations in the world, the Times reported, targeted two provisions in the original 2017 law designed to bring in hundreds of billions of dollars in revenue from companies that had been dodging U.S. taxes by stashing profits overseas.
“A tax law already disproportionately benefiting the richest of the rich has become an even greater windfall for the world’s largest companies and their shareholders.”
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“The corporate lobbying campaign was a resounding success,” the Times noted. “Through a series of obscure regulations, the Treasury carved out exceptions to the law that mean many leading American and foreign companies will owe little or nothing in new taxes on offshore profits… Companies were effectively let off the hook for tens if not hundreds of billions of taxes that they would have been required to pay.”
The two provisions are known by the acronyms BEAT (base erosion and anti-abuse tax) and GILTI (global intangible low-taxed income). Shortly after Trump signed the $1.5 trillion tax bill—which slashed the corporate tax rate from 35% to 21%—lobbyists from major American companies like Bank of America and General Electric as well as foreign banks swarmed the White House in an effort to gut the BEAT and GILTI taxes.
Trump’s Treasury Department largely granted the lobbyists’ wishes, turning what was already a massive corporate handout into an even more generous gift to big companies and banks.
The Times reported:
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