Senate considering tax on U.S. passive income from foreign investors, sparking concerns

From Quiver Quantitative: 2025-06-25 01:32:00

Six major investment associations have urged Senate leaders to exempt passive income from the latest tax and spending package, citing concerns that a proposed tax on foreign investors could disrupt U.S. markets. The levy would impose a progressive tax of up to 20% on foreign holders of U.S. passive income, with implementation delayed until 2027 in the Senate bill. Analysts warn that even the discussion of this tax could deter foreign investment in the U.S., potentially leading to higher borrowing costs and reduced market liquidity. The fate of the exemption will depend on ongoing bipartisan negotiations as Congress finalizes the bill.



Read more at Quiver Quantitative: Senate Passive Income Provision Could Undermine U.S. Market Liquidity