US EditionWall Street fears foreign tax in budget bill may reduce allure of US assets
- Last week, the U.S. House of Representatives approved legislation that includes Section 899, a provision aimed at imposing taxes on foreign investments within the United States.
- Section 899 targets countries with punitive or discriminatory tax policies, increasing tax rates on U.S. income for foreign investors from those countries.
- The provision could affect U.S. companies with foreign owners, international firms, government bond holders, and fuel a retreat from U.S. assets amid already fragile investor confidence.
- Experts caution that Section 899 could reduce U.S. Treasury yields by almost 100 basis points, trigger capital flight, and have serious negative effects on multinational firms with business interests in the United States.
- The bill still requires Senate approval, with legal experts expecting significant changes and warnings that it could disrupt foreign investment and U.S. economic competitiveness.
47 Articles
47 Articles
What is ‘revenge tax’ Section 899 of the One Big Beautiful Bill? Why is it raising alarms on Wall Street?
Wall Street investors are shifting their focus to ‘revenge tax’ Section 899 of the bill, which can impact the attractiveness of US assets. This is a part of the One Big Beautiful Bill Act, a budget reconciliation bill which includes major provisions in US taxes.
A new US bill provides for a five-percent tax surcharge on income from financial participations in the United States to be applied to German investors, which is said to be "discriminatory" tax practices in Europe, says the Trump administration.
Sydney Morning Herald
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