In testimony before the United States Senate Committee on Finance, Treasury Secretary Steven T. Mnuchin highlighted successful economic initiatives from the previous year and explained funding priorities contained in the proposed FY 2021 Budget.
Mr. Mnuchin touted the importance of (i) the Tax Cuts and Jobs Act, (ii) the Phase One trade deal with China, and (iii) the United States-Mexico-Canada Agreement (or "USMCA"), which Mr. Mnuchin said set "some of the highest standards ever included in a trade agreement."
Mr. Mnuchin also outlined the administration's request for $12 billion for the IRS. Funds from the budget request, he said, would (i) implement the Taxpayer First Act and the third-year part of the Integrated Business Systems Modernization Plan and (ii) modernize the IRS by updating systems and utilizing data analytics, as well as other technological tools, to "enhance the effectiveness of audit enforcement activities." To reduce the tax gap, he requested a program integrity cap adjustment that would result in an estimated net savings of $64 billion over 10 years.
Additionally, Mr. Mnuchin proposed increasing funding for the Office of Terrorism and Financial Intelligence, and for FinCEN as it (i) prepares to introduce several "significant new requirements" concerning cryptocurrencies and (ii) continues to monitor and ultimately prosecute illicit cryptocurrency transactions.
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