Senate Finance Committee Democrats are questioning whether lobbying efforts led the Trump administration to make the 2017 tax law more favorable to multinational companies as it crafted regulations putting the changes in place.
The group, led by ranking member Ron Wyden (D-Ore.), called the changes in the law—including a corporate tax rate cut to 21% from 35%—a giveaway to multinational companies. The panel has an oversight obligation of the administration’s implementation of the law, they said Thursday in a letter to Treasury Secretary Steven Mnuchin and Office of Management and Budget acting Director Russell Vought.
- “This includes the extent to which closed-door lobbying influenced the process of drafting regulations and whether political appointees used an expansive understanding of their authority to provide additional billions in taxpayer giveaways to our nation’s wealthiest corporations,” they said.
- International provisions added in the 2017 tax law include a new category of foreign income called global intangible low-taxed income (GILTI) and the base erosion and anti-abuse tax (BEAT), a tax on offshore payments.
- The senators asked for details, including names of attendees, of lobbying meetings on the new international regulations that took place between senior Treasury and OMB officials with companies and industry groups. They also asked for internal analyses of how those regulations may affect specific sectors or companies.