WASHINGTON: Congressional Republicans agreed to remove the so-called revenge tax provision from President Donald Trump\u2019s big bill Thursday after Treasury Secretary Scott Bessent asked members of Congress to do so earlier in the day.
\nThe Section 899 provision would allow the federal government to impose taxes on companies with foreign owners, as well as investors from countries judged as charging \u201cunfair foreign taxes\u201d on US companies.
\nThe measure was expected to lead many companies to avoid investing in the US out of concern that they could face steep taxes.
\nBessent said in an X post that he made the request to lawmakers after reaching an agreement with other countries on the Organization for Economic Co-operation and Development Global Tax Deal. He said that after \u201cmonths of productive dialogue,\u201d they would \u201cannounce a joint understanding among G7 countries that defends American interests.\u201d
\nAfter he made the request, Senate Finance Committee Chairman Mike Crapo, R-Idaho, and House Ways and Means Committee Chairman Jason Smith, R-Missouri, said \u201cwe will remove proposed tax code Section 899\u201d from the bill and \u201cCongressional Republicans stand ready to take immediate action if the other parties walk away from this deal or slow walk its implementation.\u201d
\nThe removal of the provision will provide \u201cgreater certainty and stability for the global economy and will enhance growth and investment in the United States and beyond,\u201d Bessent said in his post.
\nAn analysis by the Global Business Alliance, a trade group representing international companies such as Toyota and Nestl\u00e9, estimates that the provision would cost the US 700,000 jobs and $100 billion annually in lost gross domestic product.<\/p>\n
The Global Business Alliance was among several groups that signed a letter addressed to Senate Majority Leader John Thune of South Dakota and Senate Finance Committee Chairman Mike Crapo of Idaho, warning of the consequences of Section 899.
\nThe removal of the provision adds a wrinkle to Republicans\u2019 plans to try to offset the cost of the massive package. The non-partisan Congressional Budget Office estimates that the bill would spike deficits by at least $2.4 trillion over the next decade.
\nRepublicans are rushing to finish the package this week to meet the president\u2019s Fourth of July deadline for passage.
\nEarlier Thursday, the Senate parliamentarian advised that a Medicaid provider tax overhaul central to the spending bill does not adhere to the chamber\u2019s procedural rules, delivering a crucial blow to Republicans, who are counting on big cuts to Medicaid and other programs to offset trillions of dollars in Trump tax breaks.<\/p>\n","protected":false},"excerpt":{"rendered":"
WASHINGTON: Congressional Republicans agreed to remove the so-called revenge tax provision from President Donald Trump\u2019s big bill Thursday after Treasury Secretary Scott Bessent asked members of Congress to do so earlier in the day. The Section 899 provision would allow the federal government to impose taxes on companies with foreign owners, as well as investors …<\/p>\n","protected":false},"author":4,"featured_media":82922,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-82911","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-world"],"_links":{"self":[{"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/posts\/82911","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/comments?post=82911"}],"version-history":[{"count":1,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/posts\/82911\/revisions"}],"predecessor-version":[{"id":82923,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/posts\/82911\/revisions\/82923"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/media\/82922"}],"wp:attachment":[{"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/media?parent=82911"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/categories?post=82911"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/tags?post=82911"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}