The federal government has launched a $1.1 trillion lawsuit against some of the country’s largest financial institutions, claiming that the government imposed a “death tax” on the industry’s ability to service its debt.
In a statement Friday, Treasury Secretary Steven Mnuchin said the government would seek to recover “millions of dollars in back taxes.”
It’s the latest effort to force major banks to pay back taxes to the government since Congress passed the bill last year to close a tax loophole that enabled banks to shelter billions of dollars from taxes.
It’s a huge victory for a group of conservative-leaning lawmakers who have pushed for a tax break for banks since the financial crisis.
Mnuchin said he would also seek to require the companies to share information with the government on transactions involving billions of taxpayer dollars.
The government’s lawsuit comes as the U.S. economy has been struggling with the effects of the recession, which has crimped consumer spending and caused many firms to shed jobs.
It also comes as President Donald Trump is set to unveil new tax cuts this week.