From Yahoo Finance: 2025-06-02 16:30:00

Senate Republicans are considering the impact of a potential “revenge” tax in Trump’s fiscal package. The provision, Section 899, would raise rates for individuals and companies from countries with “discriminatory” tax policies. Analysts warn it could deter foreign investors, hurting US assets. Senate plans to release a new draft soon.

The retaliatory tax wouldn’t apply to portfolio interest like Treasuries. Morgan Stanley’s Michael Zezas says the provision worries investors as it grants more executive authority. Senate aims to pass a bill without further changes, focusing on spending cuts and permanent business tax breaks. Updates include additional comments and context.

Read more: Senate to Review Trump ‘Revenge’ Tax Worrying Wall Street