Debate Over Section 899: Trump's Tax Retaliation Proposal Faces Uncertainty
Section 899, a tax retaliation proposal in Trump's tax-cut bill, may be removed if an international tax agreement is reached. It targets foreign taxes affecting U.S. firms with a 20% tax on foreign investors' U.S. income. The Senate's decision is crucial for its enactment.
In a complex tax debate, President Trump's retaliation proposal, Section 899, may see its fate determined by an international deal. The proposal, embedded in Trump's comprehensive budget bill, targets foreign taxes perceived as unfair to U.S. companies.
If an agreement with the European Union is reached, possibly suspending the 'Pillar Two' global corporate tax, the contentious Section 899 could be removed, according to House Ways and Means Committee Chair Jason Smith.
The proposal, which imposes up to a 20% tax on foreign investors' U.S. income, seeks to counteract taxes affecting major U.S. technology players like Amazon and Alphabet. Senate approval remains essential as negotiations continue, aiming for a swift passage of the broader bill.
(With inputs from agencies.)
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