US Treasury Secretary Bessent Urges Congress to Remove 'Revenge Tax' Proposal

U.S. Treasury Secretary Scott Bessent has requested that Congress remove Section 899, a controversial tax provision from President Trump's tax-cut and spending bill, which would have imposed 'revenge taxes' of up to 20% on foreign investments from countries deemed to have unfair economic policies against U.S. businesses. This move follows a G7 agreement reached to protect American interests, making the provision unnecessary. The provision had drawn criticism internationally, including from Australian Treasurer Jim Chalmers, who urged Bessent to reconsider the impact on superannuation funds and companies investing in the U.S. Additionally, a nonprofit organization advocating for free markets has urged the Treasury Department to address punitive digital service taxes and regulations imposed by the European Union, which they say unfairly target major American tech firms like Alphabet, Apple, and Meta while favoring Chinese competitors. These measures, including the EU’s Digital Markets Act and Digital Services Act, have been criticized for disproportionately impacting large U.S. technology companies. The developments highlight ongoing tensions in international trade and investment policies affecting U.S. businesses and their foreign counterparts.