WASHINGTON (AP) – Congressional Republicans agreed to remove the so-called revenge tax from President Donald Trump’s big bill Thursday after a request from Treasury Secretary Scott Bessent.
Article 899 would allow the federal government to impose taxes on companies that have foreign owners and investors from countries judged as “unfair foreign taxes” for U.S. companies.
The measure is expected to cause many companies to avoid investments that may face huge tax concerns in the United States. However, the removal of the provision added wrinkles to Republicans’ plans to offset the cost of large-scale packaging.
Bessent said in his X post that he made a request to lawmakers after reaching a deal with the global tax agreement on economic cooperation and development with other countries. He said that after “months of productive dialogue,” they will “declare a common understanding among the G7 countries that defend the interests of the United States.”
Mike Crapo, chairman of the Senate Finance Committee, r-idaho, and R-Mo, chairman of the House’s Roads and Means Committee. It said they will delete the provision. However, they noted that “Congressional Republicans are ready to take immediate action if other parties leave the deal or walk slowly on its implementation.”
In his post, Bessent said that removing the provision would “provide greater certainty and stability to the global economy and would enhance growth and investment in the U.S. and beyond.”
Analysis by the Global Business Alliance, a trading group representing international companies such as Toyota and Nestlé, estimates that the regulation will cost 360,000 jobs and $55 billion in losses in the United States.
The Global Business Alliance is one of several groups that signed a letter to Senate Majority Leader John Thune, Rs.d. and warn of the consequences of Article 899.
Republicans are rushing to complete the plan this week to meet the president’s July April pass deadline.
Earlier Thursday, Senate members suggested that a tax overhaul for Medicaid providers in the spending bill did not comply with the rules of the chamber’s procedural rules, dealing a crucial blow to Republicans who are counting on big cuts to Medicaid and other programs to offset a large dollar Trump’s tax cuts.
___
