U.S. Tax Retaliation Proposal Faces Possible Removal Amid International Negotiations
Section 899, President Trump's proposal to retaliate against foreign taxes deemed unfair, could be removed from his tax-cut and spending bill if international agreements are reached. Discussions center around suspending certain taxes, such as the 'Pillar Two' and digital services taxes, impacting U.S. tech companies.
President Donald Trump's proposal, Section 899, aims to allow tax retaliation against countries with allegedly unfair tax practices and could be removed from a pending budget bill under certain conditions, Republican leaders indicated on Wednesday. The proposal could be struck from the bill if an international deal is achieved ahead of the bill's passage.
House Ways and Means Committee Chair Jason Smith noted that the provision, part of a larger tax-cut and spending legislation, targets taxes like the 'Pillar Two' corporate tax. A fair treatment agreement from the European Union and other countries could negate the necessity of Section 899, Smith mentioned in an interview.
White House economic adviser Kevin Hassett echoed these sentiments, highlighting Section 899 as a counteraction against global taxes affecting major tech firms. The Senate's decision on the measure requires adherence to budget rules, while the provision's impact on U.S. investments remains a concern on Wall Street.
(With inputs from agencies.)
Google News