Big Beautiful Bill Section 899: What is the 'revenge tax' in the US tax bill?

[Eugene]

Also: U.S. foreign tax bill sends jitters across Wall Street (CNBC)

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Source: Al Jazeera

What is the ‘revenge tax’ in the US tax bill?

Provision allows United States to impose additional taxes on entities from countries that it says impose unfair taxes on US firms.

By Andy Hirschfeld
Published On 4 Jun 2025
4 Jun 2025

Tucked within the proposed “Big Beautiful Bill”, the more than 1,000-page tax and spending overhaul that United States President Donald Trump wants to see enacted in law, is a provision that is being referred to as a “revenge tax”.

The “Enforcement of Remedies Against Unfair Foreign Taxes” in Section 899 targets countries that the Trump administration believes impose unfair or discriminatory taxes on US companies and individuals, and will allow the US to impose additional taxes on entities from those countries.

The provision calls, for instance, for levies on revenue from digital services, such as data monetisation and online advertising.

The proposal also includes a higher minimum tax on the profits of foreign entities, even if those profits are earned outside US borders. This could impact passive income streams, such as interest and dividends, and may discourage international investors from countries flagged as discriminatory.

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Read more: https://www.aljazeera.com/economy/2025/6/4/what-is-the-revenge-tax-in-the-us-tax-bill

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Source: CNBC

U.S. foreign tax bill sends jitters across Wall Street

Published Fri, May 30 2025 5:01 AM EDT Updated Mon, Jun 2 2025 5:04 AM EDT
Ganesh Rao
@_GaneshRao

• The “One Big Beautiful Bill Act,” includes the most sweeping changes to the tax treatment of foreign capital in the U.S. in decades under a provision known as Section 899.
• Section 899 will hit entities from so-called “discriminatory foreign countries” that impose levies that disproportionately affect U.S. companies.
• Under the new tax bill, the U.S. would hit investors from such countries by increasing taxes on U.S. income by 5 percentage points each year, potentially taking the tax rate up to 20%.

While U.S. President Donald Trump’s tariffs play out in U.S. courts, another one of his proposed laws could weaponize the American tax system.

Investment banks and law firms warn this step could prove to be as significant as the impact of duties on investors.

The “One Big Beautiful Bill Act,” which passed through the U.S. House of Representatives last week, includes the most sweeping changes to the tax treatment of foreign capital in the U.S. in decades under a provision known as Section 899. The bill must still gain the Senate’s approval.

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Read more: https://www.cnbc.com/2025/05/30/us-set-to-weaponize-taxes-on-foreign-investors-via-section-899.html

[usonian]

1. The U.S. exports a ton of professional services.

Dum Dum has no idea what they are, since the only professional services he understands are accountants, lawyers and boom boom.

Apple, Microsoft, Amazon, Google and others make a large portion of their money from services, and could be harmed by retaliation over tariffs.

Big Bullshit Boomerang.