Congressman Tom Reed (R-NY) is urging the Trump administration to clarify the financial services section of the U.S. tax code.
“We care about bringing uniformity, clarity and certainty to our tax code, especially in the realm of financial products, for the sake of the job creators around the country and the world,” Reed said.
During his testimony before the Senate Finance Committee, President Trump’s treasury secretary nominee Steven Mnuchin discussed the complexities to using offshore accounts in the Cayman Islands and Anguilla by tax-exempt entities.
Mnuchin said he would work with the IRS and congress to reduce the requirements and complexity in setting up offshore entities.
Reed believes a solution is to eliminate from the tax code regulatory hurdles for tax-exempt entities and pension funds to invest in U.S. assets. He is seeking feedback from stakeholders in developing solutions.
“We remain committed to working with the administration to address these issues both independently and within comprehensive tax reform through our role on the Ways and Means Committee,” Reed said. “We want to make sure we get this right and want to hear from those who will be impacted by changes in order to make the best possible policy and remove incentives for this offshore behavior.”