US EditionWall Street, Main Street push for foreign tax rethink in US budget bill
- Section 899, included in President Trump's 2024 spending bill approved by the House in May, introduces a withholding tax on income earned within the U.S. by foreign corporations that are majority-owned by non-U.S. stakeholders.
- The tax starts at 5%, rises by 5 percentage points annually up to 20%, and targets countries with what the U.S. calls unfair foreign taxes, including the UK, Canada, and EU members.
- Executives from major global companies and financial trade groups are meeting Washington officials this week to oppose Section 899, warning it could depress foreign investment and disrupt markets.
- Goldman Sachs analysts said companies might relist in the U.S. to increase American ownership above 50%, avoiding the tax, while experts caution this would require more complex measures.
- The bill still requires Senate approval and presidential signature expected by July 4, and specialists advise investors, especially Canadians, to await certainty before acting amid fears it could cost up to $81 billion in taxes over seven years.
69 Articles
69 Articles
U.S. Moves to Block Billions Heading Overseas with Tax Reform
U.S. Moves to Block Billions Heading Overseas with Tax Reform In a significant economic maneuver, U.S. Treasury Secretary Scott Bessent has voiced support for the Republican tax and spending bill, portraying it as a pivotal tool to retain corporate tax payments within American borders. This legislative effort, dubbed the One Big Beautiful Bill Act, is positioned as a countermeasure to prevent other nations from siphoning off taxes from U.S. busi…
In the intriguing fiscal scenario of the United States, Section 899 emerges, a new progressive tax that could change the rules of the game for foreign investors.According to the original report by Carolina Mandl and Bo Erickson, it is planned to implement this proposal as a blow back to foreign taxes that are considered unfair.This tax could reach up to 20% and is expected to raise about $116 billion in ten years, which, hopefully, has not been …
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The Investment Company Institute says President Donald Trump’s tax bill impacts most foreign investments in U.S. stocks, according to documents seen by CNBC. In the letter, the ICI also suggests that the U.S. fund management industry would be “collateral damage” due to the impact of Section 899. Fund managers say investors in Europe who are focused on dividend-distributing U.S. companies would be “thinking quite carefully” about their holdings. …
For Wall Street, Gentrification Is Tax Deferred
This is a web version of The Lever’s daily email newsletter. 🔥 Today’s Lever story: Secretive dark money groups are pushing states to redefine methane gas as “clean,” undermining renewable energy initiatives.👇 Spend three minutes reading this 975-word newsletter to learn about: Banks’ new laissez-faire regulator. Why your local police officers look like soldiers.The gun lobby’s morbid spending strategy.A tax loophole for corporate gentrifiers.…
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