Daily Tax Update - January 30, 2017: President Trump Signs Executive Order on Regulatory Process

President Trump Signs Executive Order on Regulatory Process:  President Trump signed an executive order relating to the regulatory process.  The order provides that, unless prohibited by law, whenever an executive department or agency publicly proposes for notice and comment or otherwise promulgates a new regulation, it must identify at least two existing regulations to be repealed.

In addition, for fiscal year 2017, which is in progress, the heads of all agencies are directed that the total incremental cost of all new regulations, including repealed regulations, to be finalized will be no greater than zero, unless otherwise required by law or consistent with advice provided in writing by the Director of the Office of Management and Budget (the Director).  For fiscal years after 2017, the Director will identify to agencies a total amount of incremental costs that will be allowed for each agency in issuing new regulations and repealing regulations as part of the presidential budget process.

The order delegates significant implementation authority to the Director, including the authority to exempt categories of regulations from the order.

Lisa Zarlenga, a partner in Steptoe’s Washington office, stated:  “This executive order could significantly reduce the amount of regulations and possibly other guidance coming from Treasury and the IRS.  The executive order broadly defines ‘regulation’ and it is unclear whether subregulatory guidance is included within its scope.”

Finance Committee Postpones Vote on Mnuchin:  The Senate Finance Committee hearing to consider the nomination of Steven Mnuchin to be Secretary of the Treasury has been postponed to 10:00 a.m. on Tuesday, January 31.