Scoop: Treasury officials defend "revenge tax" from wary GOP senators

Top Treasury officials are privately explaining to GOP senators that Section 899 of the House-passed budget bill is already forcing foreign countries to the negotiating table, according to administration officials.Why it matters: Critics are calling the provision a "revenge tax." But the Trump administration sees Section 899 as an important tool – like tariffs – to help negotiate better deals for American multinational corporations.While Trump officials are signaling to senators a willingness to make changes to the provision, they are also making the case for why it should stay in Trump's "one big beautiful bill," officials said.Some Republican senators, including Sen Thom Tillis (R-N.C.), have expressed reservations about the provision.Zoom out: On his first day in office, Trump promised to undo the Biden's administration' plan to impose a global minimum corporate tax. He signed an executive order that it "has no force or effect."Section 899 is an attempt to give the White House more power to negotiate with the Organization for Economic Co-operation and Development, a collection of 38 market-based economies, which has also been critical of Trump's trade policies.While the original outline of the global minimum tax rates was included in President Biden's Inflation Reduction Act, it ultimately required foreign countries to come to a common agreement on how to tax multinational corporations.Republicans howled at that process and argued that it usurped Congress's constitutional power to establish tax rates. They also had policy concerns with a global minimum tax.Zoom in: Section 899 of the House-passed budget bill is designed to penalize countries that impose taxes on U.S. companies, including a global minimum tax of 15% as well as a digital services tax.It allows the U.S. to increase tax rates for foreign direct investment on countries it claims has unfair tax policies.Wall Street is worried that a potential tax on foreign investment could harm U.S. assets and the broader economy.But there's some indication that European countries are open to modifying their policies in order to mollify the Trump administration, Bloomberg reported.The other side: A coalition of trade associations, led by the Global Business Alliance, wrote to Senate Majority Leader John Thune (R-S.D.) and Senate Finance Committee Chair Mike Crapo (R-Idaho) to call for the removal of the provision."As the budget reconciliation process advances, we urge you to uphold the pro-growth principles embedded in the Tax Cuts and Jobs Act (TCJA) and avoid tax increases that would undermine American jobs, innovation, and long-term economic growth," the coalition wrote.The bottom line: The Trump administration is essentially arguing to senators that Section 899 might never have to be used.House Ways and Means Chairman Jason Smith essentially made this point last week when he told Axios' Neil Irwin that "hopefully it'll never take an effect."

Comments

World news

Hamlin undeterred by ruling siding with NASCAR in lawsuit filed by Jordan-owned 23XI and Front Row

Independent

Comments

Similar News

Scoop: Musk claims spur Democrats to probe whether Trump is in the Epstein files

Scoop: Dozens of congressional Democrats vow to boycott popular D.C. restaurants

Scoop: Trump admired Ukraine's "badass" attack, sources say

Scoop: Bondi helps secure extradition of fertility clinic bombing suspect to U.S. from Poland

Bernardine Evaristo scoops Women’s prize outstanding contribution award

Scoop: House Democrats seek DOJ docs on LaMonica McIver charging decision

Scoop: Fetterman chief of staff departing

Scoop: U.S. nuclear deal offer allows Iran to enrich uranium

Scoop: Apple to appeal EU requirement to share info with tech rivals

Scoop: Gulf leaders told Trump they oppose strikes on Iran's nuclear program

Scoop: Stephen Miller, Noem tell ICE to supercharge immigrant arrests

Scoop: Primary challengers circle Thomas Massie after Trump-defying vote

Scoop: GOP senator investigating White House handling of Biden's health

Scoop: Johnson privately cautions Senate GOP on Trump's budget bill

Scoop: House Democrats plan to probe Trump DOJ's charges against McIver

Scoop: Schumer to seek vote on blocking Qatar's gift to Trump

Scoop: First flight leaves U.S. under Trump's $1,000 "self-deport" deal

Scoop: Vance decided against Israel visit due to new Israeli operation in Gaza

Scoop: U.S. presented Iran with nuclear deal proposal

Scoop: House Democrats' oldest members mostly running again despite youth revolt

World news

Hamlin undeterred by ruling siding with NASCAR in lawsuit filed by Jordan-owned 23XI and Front Row

Bucharest gay pride march turns 20 as LGBTQ+ Romanians face growing hostility from right-wing groups

Vegetable sculpture contest features a squash Donald Trump and a papal 'cornclave'

American father wanted for allegedly killing his three daughters may be trying to flee to Canada

Parents of Brit backpacker, 24, facing 20 years in prison over fatal e-scooter crash fly to Australia

England player ratings as 4/10 Palmer sums up Tuchel’s muddled tactics

England jeered as Roy Keane criticises ‘bored’ players in laboured Andorra win

Murder suspect 'marries teen model girlfriend in secret wedding' while on run from police

Stanley Cup final: Marchand plays hero for Panthers in Game 2 win over Oilers

Prairie wildfires having air quality impact on several provinces

Russian attacks on Ukrainian city of Kharkiv kill 4

Health Canada warns consumers not to inhale ‘laughing gas’ recreationally

Gender stereotypes shape reactions to Trump-Musk outburst

Elks open regular season against Lions in Vancouver on Saturday

Calgary Stampeders set to start new CFL season with Vernon Adams Jr. at QB

Liberia's ex-speaker charged with arson over parliament fire

Russian attack on eastern Ukrainian city of Kharkiv kills 3, wounds 21

Why were so many Thai farmers among the hostages held by Hamas?

New powers demanded to tackle Russia's 'shadow fleets'

Donald Trump issues stark warning to Elon Musk as furious row continues

JD Vance reveals how Donald Trump really feels about Elon Musk spat

The incredible £24.8bn transport mega project that will transform Europe

Katie Miller, Stephen Miller’s wife, in a ‘tricky situation’ after Musk and Trump’s falling out

Man charged with targeting MLB and NFL stars in home burglary spree

More alleged child porn victims of former New Pornographers drummer come forward, authorities say

I defended female serial killer Aileen Wuornos who slaughtered six – chilling encounter PROVED why she was so dangerous

Car ploughs into crowd in Germany leaving at least two injured including girl, 5, as driver arrested

Brit backpacker faces 20 years in jail for ‘killing man in e-scooter crash’

Zia Yusuf announces return to Reform UK 48 hours after quitting

What we know about M&S hack after gang sends boss abusive ransom email

Where Reeves may splash the cash at the spending review – and who will miss out

Saskatchewan celebrates Eid Al-Adha

Canadians facing device searches and detainment is ‘not a pattern,’ U.S. ambassador says

Vance says Musk making ‘huge mistake’ going after Trump but downplays ’emotional’ attacks

Passau horror LIVE as driver 'deliberately ploughs into crowd including his wife and daughter'

Albufeira horror with chilling similarity in cause of death between two Brits found dead

Andrew Tate caught speeding 146km/h over limit in Romania

Central Asia's tallest Lenin statue taken down

Coco Gauff wins the French Open to claim her 2nd Grand Slam title

Russian drones and missiles target Ukraine's eastern city of Kharkiv, killing 3, officials say

U.K. judge warns of risk to justice after lawyers cited fake AI-generated cases in court

France's president will visit Greenland in a show of EU unity, Danish leader says

Taliban leader calls the U.S. an 'oppressor,' slams Trump's travel ban on Afghans

Can an American pope apply U.S.-style fundraising to fix Vatican finances?

Israel says it has retrieved the body of a Thai hostage kidnapped into Gaza on Oct. 7, 2023

Yemen's al-Qaida branch leader threatens Trump, Musk and others

An AP discussion on the courts, lawyers and testimony inside the Diddy, Weinstein and Mangione cases

Trump and Musk’s spectacular split minute-by-minute: How president and First Buddy’s friendship unraveled online

House DOGE caucus leader says ‘everybody knew’ Elon Musk was exaggerating his cost-cutting achievements

Why Trump and Musk’s spectacular feud could be a disaster for space travel

Donald Trump wants his new Air Force One as soon as possible. That could be an issue

Why so many Thai nationals are among the hostages held by Hamas in Gaza

El Salvador deportee returned to the US and charged with human smuggling

Outrage at newspaper’s plea for photos of women in skirts ‘the shorter the better’

Why Tesla’s $152bn stock plunge is more serious than you think

Labour has no plan to deal with Reform despite by-election win, insiders fear

Musk post claiming Trump appears in Epstein files removed