US EditionUS Borrowers Face Higher Interest If Trump's 'Revenge Tax' Becomes Law
- President Donald Trump's proposed tax and spending bill includes Section 899, a measure that may raise interest costs for certain U.S. Borrowers by taxing foreign investors.
- Section 899 targets countries like Canada, the UK, and France that impose digital service taxes or corporate tax rules the U.S. Deems unfair, prompting this retaliatory measure.
- The provision imposes a 5% withholding tax on interest payments from U.S. Borrowers to foreign lenders, causing borrowers to pay about 5.3% more due to gross-up and compounded taxes.
- Experts warn Section 899 could drive away foreign investors, disrupt U.S. Companies, and cause market instability, with concerns of a 'revenge tax' escalating up to 20% over time.
- If enacted, the tax may reduce foreign confidence in U.S. Assets, potentially slowing economic growth and contributing to greater market volatility and recession risks in 2025.
18 Articles
18 Articles
'US no longer a safe nation for investment': Why Carmignac chief economist thinks Trump's 'revenge tax' will backfire
Gallardo of Carmignac cautions that Trump's tax provisions make the US less attractive for investors, prompting a shift of investments from the US to Europe, where economic reforms are gaining traction.
Trump plans in his tax law a special tax for foreign donors. Economic experts fear more uncertainty and a stronger avertion from the dollar.
A rule in Donald Trump's tax law provides for a special tax for foreign investors. According to experts, it could create uncertainty and increase the escape from the dollar.
Trump ‘revenge tax’ may open new front in global trade war, with consequences for your wallet
A little-noticed provision in President Donald Trump’s sweeping tax and spending bill could spark the next battle in an escalating global trade war — and potentially unnerve an already rattled market for U.S. Treasurys that is critical to the global economy.
Republican senators face Wall Street worries over megabill’s retaliatory tax
The NewsSenate Republicans have a new headache as they wrangle President Donald Trump’s megabill toward a final vote: panic on Wall Street over its proposed new retaliatory tax on certain foreign investment in the US.Corporate interests are pushing back against the bill’s escalating taxes against foreign investors from countries that impose “discriminatory” taxes on multinational business. The House included the retaliatory tax in its version of…
Coverage Details
Bias Distribution
- 55% of the sources are Center
To view factuality data please Upgrade to Premium
Ownership
To view ownership data please Upgrade to Vantage
