On April 21, 2017, President Trump signed Executive Order 13789 to direct the Secretary of the Treasury to conduct a sweeping review of federal tax regulations. The order specifically targeted regulations issued after January 1, 2016, requiring the Treasury Department to identify those imposing what the administration characterized as "undue financial burdens" on businesses and taxpayers. The executive order established a notable mechanism: for every new tax regulation subsequently issued, the Treasury Department would be required to identify two existing regulations for elimination. This "one-in, two-out" approach reflected the administration's broader deregulatory agenda and placed significant discretionary power in Treasury's hands to determine which tax rules constituted excessive burden.
The direct effects of this order fell on corporations, business owners, and high-wealth taxpayers who stood to benefit from reduced tax compliance requirements and potentially lower tax obligations. The Treasury Department's formal review process identified specific regulations for proposed repeal or revision, affecting everything from documentation standards to reporting requirements that had governed business taxation. Mid-sized and smaller firms without specialized tax compliance departments faced potential advantages, though the order's primary beneficiaries were large corporations and wealthy individuals capable of navigating complex tax structures.
This action accelerated a pattern evident in subsequent Trump administration economic policies, where executive authority was deployed to narrow tax enforcement and regulatory oversight. The 2026 DOJ settlement granting Trump personal immunity from IRS audits and tax penalties represents the logical endpoint of this trajectory—what began as general deregulation evolved into exemptions from ordinary tax accountability mechanisms. The order's emphasis on regulatory burden removal dovetailed with the administration's simultaneous efforts to expand executive trade powers and implement tariffs through emergency declarations, suggesting a consistent approach of concentrating economic authority in the presidency while reducing oversight structures.
No significant legal challenges to Executive Order 13789's constitutionality emerged during the Trump administration, though the order's effects on federal revenue collection and compliance equity generated ongoing policy debate. The Treasury Department's regulatory work proceeded through administrative channels rather than requiring congressional approval, limiting legislative oversight.
Executive Order 13789: Identifying and Reducing Tax Regulatory Burdens
💰 Economy · First Term (2017–2021) · 🤖 AI-categorized
On April 21, 2017, President Trump signed Executive Order 13789 directing the Secretary of the Treasury to identify tax regulations that impose undue financial burdens on American businesses and taxpayers, and to recommend repeal or modification of such regulations. The order required a review of significant tax regulations issued after January 1, 2016, and mandated that for every new tax regulation issued, two existing tax regulations be identified for elimination. The confirmed direct effect was initiation of a formal regulatory review process by the Treasury Department that resulted in identification and proposal of specific tax regulations for repeal or revision.