Blows to balancing Donald Trump's 'big beautiful bill'
Congressional Republicans have removed the so-called revenge tax provision from President Donald Trump's big bill after a request by Treasury Secretary Scott Bessent.
The Section 899 provision that was nixed would have allowed the federal government to impose taxes on companies with foreign owners, as well as investors from countries judged as charging "unfair foreign taxes" on US companies.
The measure was expected to lead many companies to avoid investing in the US out of concern that they could face steep taxes. But the removal of the provision adds a wrinkle to Republicans' plans to try to offset the cost of the massive package.Bessent said in an X post that he made the request to lawmakers after reaching an agreement with other countries on the OECD Global Tax Deal. He said that after "months of productive dialogue," they would "announce a joint understanding among G7 countries that defends American interests."
Senate Finance Committee Chairman Mike Crapo, and House Ways and Means Committee Chairman Jason Smith, said they would remove the provision. But, they noted, "Congressional Republicans stand ready to take immediate action if the other parties walk away from this deal or slow walk its implementation."
The removal of the provision will provide "greater certainty and stability for the global economy and will enhance growth and investment in the United States and beyond," Bessent said in his post.
An analysis by the Global Business Alliance, a trade group representing international companies such as Toyota and Nestlé, estimated that the provision would have cost the US 360,000 jobs and $55 billion annually over 10 years in lost gross domestic product.
Republicans are rushing to finish the package this week to meet the president's Fourth of July deadline for passage.
Earlier ,the Senate parliamentarian advised that a Medicaid provider tax overhaul central to the spending bill does not adhere to the chamber's procedural rules.
Guidance from the non-partisan Senate parliamentarian Elizabeth MacDonough is rarely ignored.
Republicans were counting on big cuts to Medicaid and other programs to offset trillions of dollars in Trump tax breaks, their top priority. Additionally, the parliamentarian advised against various GOP provisions barring certain immigrants from health care programs.
Republicans scrambled Thursday to respond, with some calling for challenging, or ever firing, the parliamentarian, who has been on the job since 2012, though GOP leaders dismissed those views. Instead, they worked to revise the various proposals.
"We have contingency plans," said Majority Leader John Thune.
Friday's expected votes appeared to be slipping, but Thune insisted that "we're ploughing forward."
Democrats, who are unified against the package as a tax giveaway for the wealthy at the expense of American safety net programs, said the procedural decisions would devastate the GOP package.
Trump hosted House Speaker Mike Johnson and other GOP lawmakers at the White House joined by truck drivers, firefighters, tipped workers, ranchers and others that the administration says will benefit from the bill.
"We don't want to have grandstanders," Trump said of the GOP holdouts.
At its core, the big bill, which has passed the House and is now being revised in the Senate, includes $3.8 trillion in tax breaks that had been approved during Trump's first term, but will expire in December imposing a tax hike if Congress fails to act.
Senior Republicans said they would try to revise the provision to make it acceptable, perhaps by extending the start date of any changes.
Congressional Republicans have removed the so-called revenge tax provision from President Donald Trump's big bill after a request by Treasury Secretary Scott Bessent.
The Section 899 provision that was nixed would have allowed the federal government to impose taxes on companies with foreign owners, as well as investors from countries judged as charging "unfair foreign taxes" on US companies.
The measure was expected to lead many companies to avoid investing in the US out of concern that they could face steep taxes. But the removal of the provision adds a wrinkle to Republicans' plans to try to offset the cost of the massive package.Bessent said in an X post that he made the request to lawmakers after reaching an agreement with other countries on the OECD Global Tax Deal. He said that after "months of productive dialogue," they would "announce a joint understanding among G7 countries that defends American interests."
Senate Finance Committee Chairman Mike Crapo, and House Ways and Means Committee Chairman Jason Smith, said they would remove the provision. But, they noted, "Congressional Republicans stand ready to take immediate action if the other parties walk away from this deal or slow walk its implementation."
The removal of the provision will provide "greater certainty and stability for the global economy and will enhance growth and investment in the United States and beyond," Bessent said in his post.
An analysis by the Global Business Alliance, a trade group representing international companies such as Toyota and Nestlé, estimated that the provision would have cost the US 360,000 jobs and $55 billion annually over 10 years in lost gross domestic product.
Republicans are rushing to finish the package this week to meet the president's Fourth of July deadline for passage.
Earlier ,the Senate parliamentarian advised that a Medicaid provider tax overhaul central to the spending bill does not adhere to the chamber's procedural rules.
Guidance from the non-partisan Senate parliamentarian Elizabeth MacDonough is rarely ignored.
Republicans were counting on big cuts to Medicaid and other programs to offset trillions of dollars in Trump tax breaks, their top priority. Additionally, the parliamentarian advised against various GOP provisions barring certain immigrants from health care programs.
Republicans scrambled Thursday to respond, with some calling for challenging, or ever firing, the parliamentarian, who has been on the job since 2012, though GOP leaders dismissed those views. Instead, they worked to revise the various proposals.
"We have contingency plans," said Majority Leader John Thune.
Friday's expected votes appeared to be slipping, but Thune insisted that "we're ploughing forward."
Democrats, who are unified against the package as a tax giveaway for the wealthy at the expense of American safety net programs, said the procedural decisions would devastate the GOP package.
Trump hosted House Speaker Mike Johnson and other GOP lawmakers at the White House joined by truck drivers, firefighters, tipped workers, ranchers and others that the administration says will benefit from the bill.
"We don't want to have grandstanders," Trump said of the GOP holdouts.
At its core, the big bill, which has passed the House and is now being revised in the Senate, includes $3.8 trillion in tax breaks that had been approved during Trump's first term, but will expire in December imposing a tax hike if Congress fails to act.
Senior Republicans said they would try to revise the provision to make it acceptable, perhaps by extending the start date of any changes.
Congressional Republicans have removed the so-called revenge tax provision from President Donald Trump's big bill after a request by Treasury Secretary Scott Bessent.
The Section 899 provision that was nixed would have allowed the federal government to impose taxes on companies with foreign owners, as well as investors from countries judged as charging "unfair foreign taxes" on US companies.
The measure was expected to lead many companies to avoid investing in the US out of concern that they could face steep taxes. But the removal of the provision adds a wrinkle to Republicans' plans to try to offset the cost of the massive package.Bessent said in an X post that he made the request to lawmakers after reaching an agreement with other countries on the OECD Global Tax Deal. He said that after "months of productive dialogue," they would "announce a joint understanding among G7 countries that defends American interests."
Senate Finance Committee Chairman Mike Crapo, and House Ways and Means Committee Chairman Jason Smith, said they would remove the provision. But, they noted, "Congressional Republicans stand ready to take immediate action if the other parties walk away from this deal or slow walk its implementation."
The removal of the provision will provide "greater certainty and stability for the global economy and will enhance growth and investment in the United States and beyond," Bessent said in his post.
An analysis by the Global Business Alliance, a trade group representing international companies such as Toyota and Nestlé, estimated that the provision would have cost the US 360,000 jobs and $55 billion annually over 10 years in lost gross domestic product.
Republicans are rushing to finish the package this week to meet the president's Fourth of July deadline for passage.
Earlier ,the Senate parliamentarian advised that a Medicaid provider tax overhaul central to the spending bill does not adhere to the chamber's procedural rules.
Guidance from the non-partisan Senate parliamentarian Elizabeth MacDonough is rarely ignored.
Republicans were counting on big cuts to Medicaid and other programs to offset trillions of dollars in Trump tax breaks, their top priority. Additionally, the parliamentarian advised against various GOP provisions barring certain immigrants from health care programs.
Republicans scrambled Thursday to respond, with some calling for challenging, or ever firing, the parliamentarian, who has been on the job since 2012, though GOP leaders dismissed those views. Instead, they worked to revise the various proposals.
"We have contingency plans," said Majority Leader John Thune.
Friday's expected votes appeared to be slipping, but Thune insisted that "we're ploughing forward."
Democrats, who are unified against the package as a tax giveaway for the wealthy at the expense of American safety net programs, said the procedural decisions would devastate the GOP package.
Trump hosted House Speaker Mike Johnson and other GOP lawmakers at the White House joined by truck drivers, firefighters, tipped workers, ranchers and others that the administration says will benefit from the bill.
"We don't want to have grandstanders," Trump said of the GOP holdouts.
At its core, the big bill, which has passed the House and is now being revised in the Senate, includes $3.8 trillion in tax breaks that had been approved during Trump's first term, but will expire in December imposing a tax hike if Congress fails to act.
Senior Republicans said they would try to revise the provision to make it acceptable, perhaps by extending the start date of any changes.
Congressional Republicans have removed the so-called revenge tax provision from President Donald Trump's big bill after a request by Treasury Secretary Scott Bessent.
The Section 899 provision that was nixed would have allowed the federal government to impose taxes on companies with foreign owners, as well as investors from countries judged as charging "unfair foreign taxes" on US companies.
The measure was expected to lead many companies to avoid investing in the US out of concern that they could face steep taxes. But the removal of the provision adds a wrinkle to Republicans' plans to try to offset the cost of the massive package.Bessent said in an X post that he made the request to lawmakers after reaching an agreement with other countries on the OECD Global Tax Deal. He said that after "months of productive dialogue," they would "announce a joint understanding among G7 countries that defends American interests."
Senate Finance Committee Chairman Mike Crapo, and House Ways and Means Committee Chairman Jason Smith, said they would remove the provision. But, they noted, "Congressional Republicans stand ready to take immediate action if the other parties walk away from this deal or slow walk its implementation."
The removal of the provision will provide "greater certainty and stability for the global economy and will enhance growth and investment in the United States and beyond," Bessent said in his post.
An analysis by the Global Business Alliance, a trade group representing international companies such as Toyota and Nestlé, estimated that the provision would have cost the US 360,000 jobs and $55 billion annually over 10 years in lost gross domestic product.
Republicans are rushing to finish the package this week to meet the president's Fourth of July deadline for passage.
Earlier ,the Senate parliamentarian advised that a Medicaid provider tax overhaul central to the spending bill does not adhere to the chamber's procedural rules.
Guidance from the non-partisan Senate parliamentarian Elizabeth MacDonough is rarely ignored.
Republicans were counting on big cuts to Medicaid and other programs to offset trillions of dollars in Trump tax breaks, their top priority. Additionally, the parliamentarian advised against various GOP provisions barring certain immigrants from health care programs.
Republicans scrambled Thursday to respond, with some calling for challenging, or ever firing, the parliamentarian, who has been on the job since 2012, though GOP leaders dismissed those views. Instead, they worked to revise the various proposals.
"We have contingency plans," said Majority Leader John Thune.
Friday's expected votes appeared to be slipping, but Thune insisted that "we're ploughing forward."
Democrats, who are unified against the package as a tax giveaway for the wealthy at the expense of American safety net programs, said the procedural decisions would devastate the GOP package.
Trump hosted House Speaker Mike Johnson and other GOP lawmakers at the White House joined by truck drivers, firefighters, tipped workers, ranchers and others that the administration says will benefit from the bill.
"We don't want to have grandstanders," Trump said of the GOP holdouts.
At its core, the big bill, which has passed the House and is now being revised in the Senate, includes $3.8 trillion in tax breaks that had been approved during Trump's first term, but will expire in December imposing a tax hike if Congress fails to act.
Senior Republicans said they would try to revise the provision to make it acceptable, perhaps by extending the start date of any changes.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
AU Financial Review
an hour ago
- AU Financial Review
Alarm sounded over navy ships riddled with defects
The navy's biggest ships are riddled with hundreds of defects and are failing to meet availability targets, as chiefs grapple with underfunded maintenance budgets and a lack of skilled engineers to keep the vessels at sea, according to a scathing audit report. As the Albanese government comes under intense scrutiny to lift defence spending, the auditor-general aired internal concerns that the navy's failure could shake American and British faith in Australia's ability to operate nuclear-powered submarines.
Perth Now
an hour ago
- Perth Now
Major banks tumble as sharemarket seesaws
Australia's sharemarket seesawed throughout Friday's trading before eventually falling, as investors sold down the major banks and moved into the mining sector. The benchmark ASX 200 index fell during Friday's reading with shares dropping 36.60 points or 0.43 per cent to 8,514.20 The broader All Ordinaries also dropped and is trading down 29.90 points or 0.34 per cent to 8,743.70. BHP, RIO, Fortescue soared on a strong day for the miners. Picture NewsWire/ Gaye Gerard. Credit: News Corp Australia On a mixed day for Australia's largest sectors the major miners soared, while the banks and healthcare stocks fell by 1.51 and 1.41 per cent respectively. CBA had its biggest fall in almost nine weeks, slumping 2.8 per cent to $185.36. The other major banks followed with NAB dropping 1.6 per cent to $39.26, while Westpac fell 1.9 per cent to $33.90 and ANZ dropped 1.8 per cent to $29.20. Shares in CSL slipped 2.3 per cent to $234.34 while Sigma Healthcare fell nearly 2 per cent and is now trading at $2.95 a share. Overall, eight of the 11 sectors were lower, with just materials, information technology and telecommunications finishing in the green. The major iron ore miners soared on the back of a jump in the underlying commodities price. BHP closed 3.90 per cent higher to $37.53, Rio Tinto climbed 4.59 per cent to $108.97 and Fortescue Metals gained 3.55 per cent to $15.46. The Australian dollar lifted slightly and is now buying at 65.48 US cents. Despite the falls, the ASX 200 gained 0.1 per cent for the week NewsWire / Max Mason-Hubers Credit: News Corp Australia In company news, Woolworths announced it was shutting down its online retailer MyDeal from September 30 as it looks to focus on Big W Market and Everyday Market. AMP chief economist and head of investment strategy Shane Oliver said shares have climbed the wall of worry, as Trump tries to build a New World Order. 'Fortunately, Trump backed down on the worst of his tariffs for now and the Middle East threat has fizzled leaving US, global and Australian shares just 0.7 per cent or less below record highs and on track for another financial year of strong returns helped by strong profit growth in the US and central bank rate cuts elsewhere, including in Australia.' He also highlights the market is set to enter a traditionally strong period in the coming days. 'July is normally a strong month for shares and a break to record highs could be imminent,' Mr Oliver said. However, volatility is likely to remain high as US and Australian shares are expensive and Trump's tariff threat will likely increase again. Mr Oliver said the 9th July tariff deadline was rapidly approaching and some countries likely to see hikes beyond 10 per cent tariffs. In an announcement to the ASX, Woolworths estimates the cost of closing the online business will be between $90m and $100m, including payments for outstanding equity and staff redundancies. PointsBet said they will be at the bottom of the range for previous guidance. Earlier in the year the business projected revenues of between $260-270 million and earnings before interest, tax, depreciation and amortisation of between $11- $14 million for the 2025 financial year. Reece shares slumped 18.7 per cent to $14.12 after the plumbing and bathroom supplier told the market earnings will fall into the range of $548-$558m down from $681m last year.
West Australian
an hour ago
- West Australian
Anthony Albanese stares down White House defence spending demands as pressure mounts at home
Anthony Albanese is staring down an emboldened White House, as the Trump Administration ratchets up pressure for Australia to increase its defence spending and threaten other nations who defy such demands. The Prime Minister, who is also facing domestic demands he bolster the Budget, has indicated a preparedness to increase Australia's defence spending beyond current targets but says he won't do so because of US demands. NATO partners this week agreed to lift their defence spending to five per cent of GDP, of which 3.5 per cent will be designated for capability, at the behest of US President Donald Trump. The exception was Spain, who opted out of the pact, and was subsequently threatened by the President with higher tariffs. Buoyed by his win in the North Atlantic, Mr Trump is now set to turn his attention to the Indo-Pacific. 'If our allies in Europe and our NATO allies can do it, I think our allies and our friends in the Asia Pacific region can do it as well,' Mr Trump's press secretary Karoline Leavitt said overnight. The Trump Administration has made no secret of their desire for Australia to lift its defence spending to 3.5 per cent of GDP to counter a rising China, including direct appeals to Defence Minister Richard Marles by his American counterpart. Further requests are expected when the four Quad foreign ministers, including Penny Wong, meet in Washington next week. Mr Albanese has maintained Australia will set its own agenda, and refused to be drawn on whether he was concerned Australia could be similarly threatened if he continues to resist the President's demands that allies lift their defence budgets. 'I'm not going to comment on things between Spain and the United States,' Mr Albanese said. 'We will invest in the capability that Australia needs. What my job is to look after Australia's national interest, that includes our defence and security interests and that's precisely what we are doing.' To a further question, the PM appeared frustrated and retorted 'There's a big focus on Spain … here today'. 'We have increased our defence investment. We've increased it by $57 billion over the medium term and by more than $10b in the short term.' Australia will spend two per cent of its GDP on defence this year, or $56b. That is expected to rise to $71b by 2028-29 and reach 2.33 per cent of GDP by 2033-34. The Government has said rather than throw out an abject number, its defence spending would be guided by capability needs. 'So we don't start with the question of how much money and then start to invent capability within it. We start with the question, what's required to be able to keep Australians safe; what's required to be able to meet our defence needs; what's that capability, and then you look at the expense issue, but you don't just - there's no area of public policy in Australia where we start with the financial envelope and then say, 'Okay, spend what you want' within it,' Home Affairs Minister Tony Burke said on Friday morning. Defence experts have also cautioned that it might be one thing for NATO countries to pledge to spend 5 per cent on defence, but meeting those commitments will be another. The latest NATO estimates show nine members failed to meet the 2 per cent target - set in 2014 - in 2024. Nevertheless, former Australian ambassador to the US Joe Hockey said not taking Mr Trump's request to lift defence spending seriously could risk relegating Australia to a 'tier three' ally. Mr Hockey warned Australia needed to step up amid Beijing 'aggression', but also needed the US onside. 'This is Beijing's aggression that we need to stand up to. Chinese people are great people. It is Beijing,' he told Sky News on Friday. 'The fact is, we do need the United States. They are crucial to the Indo-Pacific. 'They've just shown the world their capability to deliver on their objectives, and importantly, they are a force for good, and have been throughout our history. 'Now we have an open display of incredible power to be able to deliver on the objectives of the Western world, and we should be embracing that, not not fearing it, not being worried or afraid to go to the Oval Office or anywhere else.' Mr Albanese and Mr Trump have not spoken since the President left the G7 summit early, subsequently cancelling the planned bilateral meeting to get back to Washington to deal with the Israel-Iran conflict. Mr Trump has since spoken to several other world leaders he had to cancel on — but not Mr Albanese. Ms Leavitt on Thursday acknowledged 'not all' of those meetings had been made up. Mr Albanese has said he and Mr Trump will reschedule a meeting. The PM is set to travel to the US again in September to address the UN general assembly, and could try and meet him on the sidelines. The Coalition are incredulous that the PM will reportedly meet the Chinese President again before he meets with Mr Trump. 'He seems better positioned to get a meeting with the President of China from the President of the United States, and that is not what we need from a country or with a country that has underpinned the security of our region and the world for 70 years,' shadow defence minister Angus Taylor said on Friday. The Coalition are also demanding a ramped up pathway to 3 per cent of GDP. 'The Prime Minister himself has made that point, the most dangerous times since the Second World War, and in that context, it's incredibly disappointing that today, the Prime Minister has said that they will not increase defence spending to a level that's appropriate and necessary in order to implement their own plan,' he said, referring to the defence strategic review. Asked outright if the US should be able to dictate how much Australia spends on defence, he said 'absolutely not'. 'We should dictate it on what is necessary for us to be in control of our own destiny and for us to make sure we are able to achieve peace through deterrence in our region.' 'This Government needs to take seriously the defence of this great nation.'
