Bessent's Diplomatic Tax Maneuver: U.S. Treasury Secretary Advocates for Change

U.S. Treasury Secretary Scott Bessent has called on Congress to eliminate Section 899 from the current budget bill. Announced on Thursday, this request follows a consensus reached with international counterparts on the OECD Global Tax Deal.

Section 899, a controversial component of former President Trump's tax-cut and spending bill, was designed to allow the U.S. to counteract foreign countries enforcing special digital service taxes on large American technology firms. Bessent's initiative aims to diffuse potential trade tensions by removing this provision.

Bessent's recent comments on X underscore his commitment to a cooperative international tax framework. He emphasized that after thorough negotiations, G7 countries have reached a joint understanding to safeguard American economic interests without fueling international tax disputes.

(With inputs from agencies.)