US Edition‘Big, Scary Moment’? What’s up with Section 899 and Its ‘Retaliatory’ Taxes?
- On May 22, 2025, the U.S. House of Representatives narrowly approved a major tax reform bill that introduced Section 899, a provision aimed at raising taxes on foreign investors operating in the United States.
- This legislation responds to foreign digital services taxes that the U.S. deems discriminatory, enabling retaliatory tax increases on investments from countries like France and others with unfair trade policies.
- Section 899 allows additional withholding taxes starting at 5% and rising up to 20% on equity investments by foreign individuals and companies from targeted countries, affecting more than 30 nations and billions in foreign income.
- Critics warn Section 899 risks deterring foreign capital and damaging investor confidence amid a U.S. need for foreign investment, while supporters view it as necessary to counter unfair foreign tax policies on American businesses.
- The bill now faces debate in the Senate with possible amendments before it can become law, and stakeholders are urged to assess their exposure as the U.S. prepares to enforce these retaliatory taxes within 180 days of qualifying foreign policies.
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We Should Be Worried About “Section 899”
The version of the One Big Beautiful Bill (OBBB) passed by the House of Representatives includes a new set of “retaliatory” taxes on inbound foreign investment called Section 899. Since its passage, there has been growing concern about these taxes. The Wall Street Journal editorial board disagrees, calling the panic “odd” and based on a misunderstanding. Section 899 has two parts. The first is an escalating tax (from five percent to 20 percent) …
·Washington, United States
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Total News Sources11
Leaning Left1Leaning Right3Center2Last UpdatedBias Distribution50% Right
Bias Distribution
- 50% of the sources lean Right
50% Right
L 17%
C 33%
R 50%
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