Moscow, Nov 9 (UNI/SPUTNIK) The US Treasury Department and the Internal Revenue Service (IRS) are consistently providing more and more tax breaks to large corporations, which is expected to increase the country’s budget deficit, the New York Times reported.
The Treasury Department and the IRS, through a series of new notices and proposed regulations, are providing benefits to large private equity firms, cryptocurrency companies, foreign real estate investors, insurance companies, and various multinational corporations, the publication claims.
It noted that in October, the Treasury and the IRS had provided new tax breaks to foreign investors in US real estate, and earlier, in August and September, they had scaled back efforts to combat tax evasion by large corporations.
At the same time, the publication notes that these measures complement the package of tax breaks totaling approximately USD 4 trillion approved by Trump in July as part of the “Big Beautiful” budget law. Citing experts, the newspaper also indicates that the tax breaks will likely increase the US budget deficit by “hundreds of billions” of dollars.
Nevertheless, a representative of the US Treasury Department told the publication that the new tax policy of the authorities is a practical approach that supports American investment and competitiveness in contrast to the “bureaucratic red tape” of the previous US president, Joe Biden.
The article emphasises that such changes in tax policy are not widely publicised by the US Treasury Department, but they are being monitored by tax consultants of the country’s largest corporations, who are pleased with the Trump administration’s course. It is also indicated that Trump pursued a similar tax policy during his first presidential term.
On July 4, Trump signed a new One Big Beautiful Bill Act, which included massive tax cuts, increased defence spending, and a higher national debt ceiling. The 940-page document sparked controversy in Congress and criticism from the opposition.
