Tax Regulatory Burdens (E.O. 13789)

Summary

Directs the Treasury to review recent tax rules and change those that are too costly, complex, or go beyond the IRS's power.

What problem does this solve?

Recent tax rules have made the tax system too complicated and expensive for people and businesses. This order requires the government to find and fix these burdensome rules to make taxes simpler and fairer.

What does this order do?

Requires review of recent tax regulations

Directs the Secretary of the Treasury to review all significant tax regulations issued on or after January 1, 2016.

Identifies burdensome regulations

Instructs the Treasury to find regulations that create an undue financial burden, add too much complexity, or go beyond the legal power of the IRS.

Mandates action to reduce burdens

Requires the Secretary of the Treasury to recommend and take actions to delay, change, or remove the identified burdensome regulations.

Reconsiders exemption from regulatory review

Orders a review of the current practice that exempts some tax regulations from the normal White House review process.

Who does this affect?

U.S. Taxpayers
American Businesses
Department of the Treasury

What is the real world impact?

•

Simplifies the tax system

Aims to make the tax system easier to understand and use for everyone by getting rid of confusing and costly rules.

•

Reduces corporate tax obligations

Could lead to the removal of regulations that ensure corporations pay their fair share of taxes, framing it as 'reducing burdens' to benefit large businesses.

When does this start?

This order takes effect immediately and sets several deadlines for reports and actions.

Interim report on burdensome regulations

Must be sent to the President within 60 days of the order (by June 20, 2017).

Final report with recommended actions

Must be sent to the President within 150 days of the order (by September 18, 2017).