Tax Proposal Sparks Tensions Amid Global Negotiations
A tax proposal allowing President Trump to retaliate against certain international taxes might be dropped from the budget bill if an international accord is reached. Section 899 imposes retaliatory taxes on foreign investors' U.S. income, raising investment concerns. Ongoing negotiations could influence its inclusion in the final legislation.
A potential international agreement could lead to removal of a controversial tax proposal from President Trump's budget bill, per top White House and congressional Republicans. The provision, Section 899, retaliates against countries imposing taxes deemed unfair by Trump.
House Ways and Means Chair Jason Smith indicated that if an agreement is reached, the provision could be eliminated. The issue centers on disputes over taxes like the 'Pillar Two' global minimum tax. Opposition stems from its impact on large U.S. companies such as Amazon.
Wall Street anxieties persist over a progressive tax on foreign investors in the U.S. The Senate hopes to pass the bill soon while House voting is expected to follow swiftly.
(With inputs from agencies.)
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