US Treasury: Tax on offshore earnings is ‘unnecessary’
In a speech last week, Treasury Secretary Steven Mnuchin said that if the Trump administration can find a way to increase the tax rate on offshore profits, it would be “a really good idea.”
Mnuchin is one of many senior officials in the Trump White House who have expressed support for taxing the profits of companies that don’t pay federal taxes.
Mnuchin’s comments came as the Trump Administration has begun to roll out its new tax plan.
In his speech, Mnuchin also said that the Trump tax proposal would “provide relief for the middle class and provide a big windfall to those in the high-tax corporate tax brackets,” as well as provide “prosperity for the many American families who are struggling right now.”
Mnutherin’s speech came days after Treasury Secretary Steve Mnuchin was forced to clarify remarks he made earlier this month that suggested that the US should impose a 15% tax on offshore assets.
Mnutherlin’s remarks came in an interview with CNBC’s “Squawk Box” in which he said that “there’s a lot of money offshore” and that “you know, there are a lot people making fortunes overseas.”
I think we should just tax those in this economy who have a little bit more money offshore,” he continued. “
I think that the middle income taxpayers in this country are getting a lot more than the high income taxpayers and that’s the thing we should be focused on.”
I think we should just tax those in this economy who have a little bit more money offshore,” he continued.
Mnuturins comments came just a day after the Trump Department of the Treasury released a proposed rule to implement a 15-percent tax on foreign earnings.
The proposed rule, called “The Real Estate Settlement and Tax Relief Act of 2017,” would impose a 5% tax to the highest earners who have more than $5 million in assets.
The proposal would also apply to dividends and interest earned by companies that do not pay US federal income taxes.
The Trump administration is expected to announce its final tax proposal this week.
The tax proposal, called the “Better Way Act,” would increase the corporate tax rate from 35% to 39.6%.
The proposal also would increase tax credits for home buyers and others with down payment debt.
As we reported last week , Mnuchin has said that he believes that tax reform will provide the biggest tax relief to the middle-income earners and other Americans who have struggled to pay their fair share of taxes.