Treasury strikes deal with G-7 allies to remove "revenge tax" from Trump's tax bill

From Yahoo Finance: 2025-06-26 17:14:00

The Treasury Department struck a deal with G-7 allies to exclude US companies from certain taxes imposed by other countries in exchange for removing the Section 899 “revenge tax” from Trump’s tax bill. The provision, aiming to counter discriminatory taxes on US firms, has sparked concerns on Wall Street.

Treasury Secretary Scott Bessent announced the agreement on social media, prompting Congress to remove the revenge tax proposal from the One, Big, Beautiful Bill Act. The move came after fears that the tax would hinder foreign investment in the US. Market reaction was modest, with the S&P 500 approaching a record high.

The revenge tax, part of Trump’s tax bill, targeted countries imposing digital services taxes on US tech firms or a global minimum tax on corporations. The OECD has been leading talks on global corporate taxes, with the US showing opposition to some proposals. The tax aimed to counter the OECD’s 15% global minimum tax negotiated by former Treasury Secretary Janet Yellen.

The deal to remove the revenge tax is seen as a positive step for non-US investors and could provide certainty for investments in the US. Trump’s Treasury had been pushing for the US tax system to remain separate from the global tax framework. The move is expected to ease concerns for investors and boost market confidence.



Read more at Yahoo Finance: Treasury Deal Kills ‘Revenge Tax’ That Spooked Wall Street