Sheinbaum Disputes US Money Laundering Claims Against Mexican Banks
Mexico's president responded defiantly to US measures that could cripple three prominent local banks on accusations of potential money laundering tied to drug trafficking, arguing she's seen no evidence to support the crackdown.
President Claudia Sheinbaum told reporters that Mexican finance officials have found no proof of wrongdoing in their own investigations of the financial firms the US Department of Treasury accused of illicit activity.
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Yahoo
21 minutes ago
- Yahoo
Lawmakers remove ‘revenge' tax provision from Trump's big bill after Treasury requests its removal
WASHINGTON (AP) — Congressional Republicans agreed to remove the so-called revenge tax provision from President Donald Trump's big bill Thursday after Treasury Secretary Scott Bessent asked members of Congress to do so earlier in the day. The Section 899 provision would allow the federal government to impose taxes on companies with foreign owners, as well as investors from countries judged as charging 'unfair foreign taxes' on U.S. companies. The measure was expected to lead many companies to avoid investing in the U.S. out of concern that they could face steep taxes. Bessent said in an X post that he made the request to lawmakers after reaching an agreement with other countries on the Organization for Economic Co-operation and Development Global Tax Deal. He said that after 'months of productive dialogue,' they would 'announce a joint understanding among G7 countries that defends American interests.' After he made the request, Senate Finance Committee Chairman Mike Crapo, R-Idaho, and House Ways and Means Committee Chairman Jason Smith, R-Missouri, said 'we will remove proposed tax code Section 899' from the bill and '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, estimates that the provision would cost the U.S. 360,000 jobs and $55 billion annually over 10 years in lost gross domestic product. The Global Business Alliance was among several groups that signed a letter addressed to Senate Majority Leader John Thune of South Dakota and Senate Finance Committee Chairman Mike Crapo of Idaho, warning of the consequences of Section 899. The removal of the provision adds a wrinkle to Republicans' plans to try to offset the cost of the massive package. The non-partisan Congressional Budget Office estimates that the bill would spike deficits by at least $2.4 trillion over the next decade. Republicans are rushing to finish the package this week to meet the president's Fourth of July deadline for passage. Earlier Thursday, the Senate parliamentarian advised that a Medicaid provider tax overhaul central to the spending bill does not adhere to the chamber's procedural rules, delivering a crucial blow to Republicans, who are counting on big cuts to Medicaid and other programs to offset trillions of dollars in Trump tax breaks. ___ Fatima Hussein And Josh Boak, The Associated Press
Yahoo
26 minutes ago
- Yahoo
Stock market today: Stock rally leaves S&P 500, Nasdaq within inches of records, Dow gains 400 points
US stocks climbed just points away from record highs on Thursday as the major indexes continued a furious rally. The S&P 500 (^GSPC) came just shy from its February record of 6,144.15 to gain 0.8%, closing the session at 6,141.02. The Nasdaq Composite (^IXIC) moved up more than 1%, finishing within a handful of points from its own record. The Dow Jones Industrial Average (^DJI) also roughly 400 points or 0.9%. Nvidia stock (NVDA) was up 1%, building on its record high on Wednesday. President Trump appeared to get closer to naming his replacement for Federal Reserve Chair Jerome Powell. Trump's frustration with Powell's "wait and see" approach to interest rates has led him to consider announcing his pick to succeed the Fed chair in September or October, The Wall Street Journal reported. Markets view that as a signal that early US rate cuts have become more likely, given Trump has criticized the Fed chair for not lowering borrowing costs. Rate cut bets have also intensified as the labor market shows continued signs of weakness. Meanwhile, stocks also gained on Thursday as the White House press secretary Karoline Leavitt remarked that Trump's July 9 deadline "is not critical" for countries to strike trade deals with the US to avoid reciprocal tariffs. Earlier, the White House's chief economist, Stephen Miran, told Yahoo Finance's Brian Sozzi that Trump would likely extend the deadline for countries "negotiating in good faith." The dollar (DX=F) retreated to its lowest level since April 2022, already under pressure from concerns about tariff impacts and a looming US default. Treasury yields also declined, with the benchmark 10-year (^TNX) trading around 4.25%. Investors got a snapshot of the health of the economy in a clutch of data Thursday. The highlights: The US economy shrank 0.5% in the first quarter, according to the government's final estimate, worse than previously thought. Jobless claims rose, with continuing claims rising to their highest level since late 2021. The main event for Wall Street to end the week lands Friday with the release of the Fed's preferred inflation gauge, the Personal Consumption Expenditures (PCE) report. Investors will be watching closely for any signs that Trump's tariffs pushed prices higher. The S&P 500 (^GSPC) inched closer to a record close on Thursday as investors increasingly see a Fed rate cut in the cards as soon as July. The broad-based index added about 0.8%, coming just shy of its February record close. Meanwhile, the Dow Jones Industrial Average (^DJI) added 0.9% or 400 points. The Nasdaq Composite also gained nearly 1%, buoyed by shares of AI chip giant Nvidia (NVDA), which closed at another record high on Thursday. Investors are growing increasingly confident that the Federal Reserve will cut interest rates by the end of the year, as labor market data has shown signs of cooling in recent weeks. Data from the Department of Labor released Thursday showed 1.974 million continuing claims were filed in the week ending June 14, up from 1.937 million the week prior and the highest level seen since November 2021. Economists see an increase in continuing claims as a sign that those out of work are taking longer to find new jobs. "Employment risks are trending higher," Jefferies US economist Thomas Simons wrote in a note to clients on Thursday. Elsewhere in economic data on Thursday, the third estimate for gross domestic product for the first quarter showed that US economic growth contracted at an annualized rate of 0.5%, more than the 0.2% previously reported. Following Thursday's data releases, markets were pricing in a 27% chance the central bank cuts interest rates at its next meeting in late July, up from a 12.5% chance seen last week, per the CME FedWatch Tool. Odds of a cut by the end of September have also surged, with markets now pricing in a 92% chance the central bank will have lowered rates by then, up from a 64% chance seen just a week ago. Read more here. Battery developer QuantumScape (QS) soared over 29% Thursday after rising roughly 31% the prior day. The gains come after the company announced a breakthrough in its process for manufacturing solid-state lithium-metal batteries. Yahoo Finance's Pras Subramanian reports: Read more here. The Wall Street Journal reported Thursday that Nvidia-backed (NVDA) AI cloud firm CoreWeave (CRWV) is in talks to acquire Core Scientific (CORZ), an infrastructure provider for AI data centers and bitcoin mining, sending shares of Core Scientific up more than 28% in afternoon trading. CoreWeave has tried to acquire the bitcoin miner and data center operator before — as recently as last year. But Core Scientific said last June that it rejected the "unsolicited" proposal to purchase it for $5.75 per share (valuing the company at over $1 billion). Core Scientific had a market cap of more than $4.5 billion as of Thursday. Core Scientific, which went bankrupt in 2022 but emerged after restructuring in 2024, already does business with CoreWeave. Last year, the two firms announced a "series of 12-year contracts" for Core Scientific to host CoreWeave's Nvidia GPUs at its data centers. CoreWeave is one of the largest holders of Nvidia's (NVDA) graphics processing units and rents its data center capacity to Big Tech firms such as Microsoft (MSFT) and Meta (META), as their own stores of GPUs haven't been sufficient to power their AI ambitions. CoreWeave's business model has drawn skepticism from some on Wall Street due to its massive pile of debt borrowed at high interest rates. Mortgage rates dropped for the fourth consecutive week as geopolitical tensions eased and Treasury yields fell, Yahoo Finance's Claire Boston reports. Boston wrote: Read the full story here. Circle shares rose over 12% Thursday after a two-day plummet as the USDC (USDC-USD) stablecoin issuer is expected to face rising competition. Circle stock fell more than 15% Tuesday and nearly 11% Wednesday. That drop came after a stunning rally last week fueled by investor optimism over stablecoin regulation and adoption. The US Senate passed the GENIUS Act last week — legislation that would establish a federal framework for digital tokens backed by assets such as the US dollar. But that regulation could also accelerate competition in the space, Ferré reported. Circle's gain on Thursday helped recover losses earlier in the week. Shares traded at nearly $224 by midday, up 620% for the month but below the stock's record close above $263 on Monday. Bloomberg Intelligence analyst Diksha Gera wrote in a note Thursday that Circle's surge since its IPO "signals strong investor enthusiasm and growing institutional appetite for stablecoins." Gera added that blockchain-based tokens tied to currencies "are moving from the fringe into the financial mainstream." President Trump's top economist told Yahoo Finance that he doesn't expect the aggregate tariff rate to fall materially below 10% and that the White House may extend the negotiating period for some countries engaging in trade talks. "My expectation would be that for countries that are negotiating in good faith and making progress, that rolling back the deadline makes sense," Council of Economic Advisers chairman Stephen Miran said on Yahoo Finance's Opening Bid. "I mean, you don't blow up a deal that's that's in process and making really good faith, sincere, authentic progress by dropping a tariff bomb in it." In recent weeks, President Trump and administration officials have signaled some leeway in the July 9 tariff deadline as investors remain on watch for the return of "Liberation Day" tariffs that roiled markets. All three major averages were higher in afternoon trading, with the S&P 500 (^GSPC), Dow Jones (^DJI), and Nasdaq (^IXIC) up around 0.7%. The S&P 500 (^GSPC) was trading just a stone's throw away on Thursday from its record close from February, as well as its intraday all-time high. The broad-based index rose 0.6% to hover near 6,130 by around 11:40 a.m. ET. The S&P 500 last touched an intraday record of 6,147.43 in February, along with a record close of 6,144.15. Industrials (XLI), Communications Services (XLY) and Tech (XLK) have all led the overall market higher this year. AI chip giant Nvidia (NVDA) stock continued to tick higher Thursday, rising roughly 1after closing at a record in the prior session. Nvidia (NVDA) stock continued to tick higher Thursday, rising more than 1% in early trading after notching a record high above $154 the prior day. The gains come amid bullish predictions for the AI chip market on Wall Street. Loop Capital analyst Ananda Baruah on Wednesday raised his price target on Nvidia shares to $250, the highest of Wall Street analysts tracked by Yahoo Finance, implying that the AI chipmaker's market capitalization could soar to $6 trillion. Baruah expects the market for AI chips to grow to $2 trillion in 2028. Baruah said that "we are entering the next 'Golden Wave' of Gen AI adoption and NVDA is at the front-end of another material leg of stronger than anticipated demand." Bank of America analyst Vivek Arya wrote in his own note to investors Wednesday that he forecasts demand for AI chips reaching a more modest but still impressive $650 billion by 2030, up from $201 billion in 2025. Arya said Nvidia is set to be a "key beneficiary" as it's "still far ahead" of new entrants in the sector. Read more here. Yahoo Finance's Francisco Velasquez reports: Read more here. US stocks climbed on Thursday amid growing bets on interest rate cuts as President Trump appeared to get closer to naming his replacement for Federal Reserve Chair Jerome Powell. The Nasdaq Composite climbed about 0.3%. The S&P 500 (^GSPC) added about 0.4%, with its first record close since February in sight. Meanwhile, the Dow Jones Industrial Average (^DJI) also rose 0.4%, or around 200 points. Nvidia (NVDA) stock was up marginally and on track to build on its record high from Wednesday. Walgreens Boots Alliance stock (WBA) gained less than 1% in premarket trading on Thursday after the pharmacy chain beat earnings estimates in its fiscal third quarter. Store closures and cost-cutting efforts boosted Walgreens' profits to $0.38 per share, ahead of Bloomberg-compiled estimates of $0.31 per share. Walgreens reported revenue of $39 billion, beating estimates for $36.8 billion. CEO Tim Wentworth noted that the company remains focused on its turnaround plan. Walgreens is being taken private by Sycamore Partners in a $10 billion deal expected to close later this year. Read more here. Weekly claims for unemployment benefits slipped from their highest level in eight months during the first full week of June while the number of Americans filing for unemployment insurance on an ongoing basis reached the highest level since November 2021. Data from the Department of Labor released Thursday showed 1.974 million continuing claims were filed in the week ending June 14, up from 1.937 million the week prior and the highest level seen since November 2021. Economists see an increase in continuing claims as a sign that those out of work are taking longer to find new jobs. The data release also showed 236,000 initial jobless claims were filed in the week ending June 21, below 246,000 the week prior. The data's release comes as the US labor market continues to show signs of slowing. Read more: What are jobless claims, and why do they matter? Platinum (PL=F) futures surged to their highest level since 2014, rising more than 5% at one point to as high as $1,411.80 per ounce. Year to date, platinum futures have climbed around 56% as supply concerns have driven the metal higher. Prices for palladium (PA=F), which is sometimes used as an alternative to platinum, also increased more than 3% to trade $1,107.50. Bloomberg reports: Gold (GC=F) futures also opened higher after nearing record highs on June 13 and June 16 as investors wait for more clarity on whether the Israel-Iran ceasefire will hold. Read more here. Yahoo Finance's Hamza Shaban writes in today's Morning Brief: Read more here. Nike (NKE) is set to report its fiscal fourth quarter earnings after market close today, and Wall Street is bracing for more poor results. Yahoo Finance's Brooke DiPalma reports: Read more here. Economic data: First quarter GDP; First quarter personal consumption; Initial jobless claims (week ended June 21); Pending home sales (May); Durable goods orders (May preliminary); Wholesale inventories (May preliminary) Earnings: McCormick (MKC), Nike (NKE), Walgreens Boots Alliance (WBA) Here are some of the biggest stories you may have missed overnight and early this morning: Meta's quest to dominate the AI world Trump made a final case for his big tax bill. Economists aren't buying it. Nike earnings after the bell: Wall Street is hoping for progress Nvidia leaps to new high in remarkable turnaround Dollar slides as Trump reportedly eyes replacing Powell early China tech giants are ramping up M&A with Beijing's blessing Here are some top stocks trending on Yahoo Finance in premarket trading: Nvidia (NVDA) stock was up 1% in premarket trading on Thursday after notching a new record high of $154.31 on Wednesday. Micron (MU) stock was up over 2% before the bell on Thursday after delivering third-quarter results and fourth-quarter forecasts that exceeded estimates. But despite the upbeat results, Wall Street was not impressed. Coinbase (COIN) rose 1% in premarket trading after touching a 52-week high the day before. Bernstein analysts dubbed the cryptocurrency platform a "one-stop Amazon" of crypto services. The dollar (DX=F) has hit a low against the euro that hasn't been reached in over three and a half years. Concerns over Trump's tariff impacts on US economic stability, combined with a loss of trust over the ability of the Fed to remain independent, have consistently applied downward pressure on the greenback. Reuters reports: Read more here. The S&P 500 (^GSPC) inched closer to a record close on Thursday as investors increasingly see a Fed rate cut in the cards as soon as July. The broad-based index added about 0.8%, coming just shy of its February record close. Meanwhile, the Dow Jones Industrial Average (^DJI) added 0.9% or 400 points. The Nasdaq Composite also gained nearly 1%, buoyed by shares of AI chip giant Nvidia (NVDA), which closed at another record high on Thursday. Investors are growing increasingly confident that the Federal Reserve will cut interest rates by the end of the year, as labor market data has shown signs of cooling in recent weeks. Data from the Department of Labor released Thursday showed 1.974 million continuing claims were filed in the week ending June 14, up from 1.937 million the week prior and the highest level seen since November 2021. Economists see an increase in continuing claims as a sign that those out of work are taking longer to find new jobs. "Employment risks are trending higher," Jefferies US economist Thomas Simons wrote in a note to clients on Thursday. Elsewhere in economic data on Thursday, the third estimate for gross domestic product for the first quarter showed that US economic growth contracted at an annualized rate of 0.5%, more than the 0.2% previously reported. Following Thursday's data releases, markets were pricing in a 27% chance the central bank cuts interest rates at its next meeting in late July, up from a 12.5% chance seen last week, per the CME FedWatch Tool. Odds of a cut by the end of September have also surged, with markets now pricing in a 92% chance the central bank will have lowered rates by then, up from a 64% chance seen just a week ago. Read more here. Battery developer QuantumScape (QS) soared over 29% Thursday after rising roughly 31% the prior day. The gains come after the company announced a breakthrough in its process for manufacturing solid-state lithium-metal batteries. Yahoo Finance's Pras Subramanian reports: Read more here. The Wall Street Journal reported Thursday that Nvidia-backed (NVDA) AI cloud firm CoreWeave (CRWV) is in talks to acquire Core Scientific (CORZ), an infrastructure provider for AI data centers and bitcoin mining, sending shares of Core Scientific up more than 28% in afternoon trading. CoreWeave has tried to acquire the bitcoin miner and data center operator before — as recently as last year. But Core Scientific said last June that it rejected the "unsolicited" proposal to purchase it for $5.75 per share (valuing the company at over $1 billion). Core Scientific had a market cap of more than $4.5 billion as of Thursday. Core Scientific, which went bankrupt in 2022 but emerged after restructuring in 2024, already does business with CoreWeave. Last year, the two firms announced a "series of 12-year contracts" for Core Scientific to host CoreWeave's Nvidia GPUs at its data centers. CoreWeave is one of the largest holders of Nvidia's (NVDA) graphics processing units and rents its data center capacity to Big Tech firms such as Microsoft (MSFT) and Meta (META), as their own stores of GPUs haven't been sufficient to power their AI ambitions. CoreWeave's business model has drawn skepticism from some on Wall Street due to its massive pile of debt borrowed at high interest rates. Mortgage rates dropped for the fourth consecutive week as geopolitical tensions eased and Treasury yields fell, Yahoo Finance's Claire Boston reports. Boston wrote: Read the full story here. Circle shares rose over 12% Thursday after a two-day plummet as the USDC (USDC-USD) stablecoin issuer is expected to face rising competition. Circle stock fell more than 15% Tuesday and nearly 11% Wednesday. That drop came after a stunning rally last week fueled by investor optimism over stablecoin regulation and adoption. The US Senate passed the GENIUS Act last week — legislation that would establish a federal framework for digital tokens backed by assets such as the US dollar. But that regulation could also accelerate competition in the space, Ferré reported. Circle's gain on Thursday helped recover losses earlier in the week. Shares traded at nearly $224 by midday, up 620% for the month but below the stock's record close above $263 on Monday. Bloomberg Intelligence analyst Diksha Gera wrote in a note Thursday that Circle's surge since its IPO "signals strong investor enthusiasm and growing institutional appetite for stablecoins." Gera added that blockchain-based tokens tied to currencies "are moving from the fringe into the financial mainstream." President Trump's top economist told Yahoo Finance that he doesn't expect the aggregate tariff rate to fall materially below 10% and that the White House may extend the negotiating period for some countries engaging in trade talks. "My expectation would be that for countries that are negotiating in good faith and making progress, that rolling back the deadline makes sense," Council of Economic Advisers chairman Stephen Miran said on Yahoo Finance's Opening Bid. "I mean, you don't blow up a deal that's that's in process and making really good faith, sincere, authentic progress by dropping a tariff bomb in it." In recent weeks, President Trump and administration officials have signaled some leeway in the July 9 tariff deadline as investors remain on watch for the return of "Liberation Day" tariffs that roiled markets. All three major averages were higher in afternoon trading, with the S&P 500 (^GSPC), Dow Jones (^DJI), and Nasdaq (^IXIC) up around 0.7%. The S&P 500 (^GSPC) was trading just a stone's throw away on Thursday from its record close from February, as well as its intraday all-time high. The broad-based index rose 0.6% to hover near 6,130 by around 11:40 a.m. ET. The S&P 500 last touched an intraday record of 6,147.43 in February, along with a record close of 6,144.15. Industrials (XLI), Communications Services (XLY) and Tech (XLK) have all led the overall market higher this year. AI chip giant Nvidia (NVDA) stock continued to tick higher Thursday, rising roughly 1after closing at a record in the prior session. Nvidia (NVDA) stock continued to tick higher Thursday, rising more than 1% in early trading after notching a record high above $154 the prior day. The gains come amid bullish predictions for the AI chip market on Wall Street. Loop Capital analyst Ananda Baruah on Wednesday raised his price target on Nvidia shares to $250, the highest of Wall Street analysts tracked by Yahoo Finance, implying that the AI chipmaker's market capitalization could soar to $6 trillion. Baruah expects the market for AI chips to grow to $2 trillion in 2028. Baruah said that "we are entering the next 'Golden Wave' of Gen AI adoption and NVDA is at the front-end of another material leg of stronger than anticipated demand." Bank of America analyst Vivek Arya wrote in his own note to investors Wednesday that he forecasts demand for AI chips reaching a more modest but still impressive $650 billion by 2030, up from $201 billion in 2025. Arya said Nvidia is set to be a "key beneficiary" as it's "still far ahead" of new entrants in the sector. Read more here. Yahoo Finance's Francisco Velasquez reports: Read more here. US stocks climbed on Thursday amid growing bets on interest rate cuts as President Trump appeared to get closer to naming his replacement for Federal Reserve Chair Jerome Powell. The Nasdaq Composite climbed about 0.3%. The S&P 500 (^GSPC) added about 0.4%, with its first record close since February in sight. Meanwhile, the Dow Jones Industrial Average (^DJI) also rose 0.4%, or around 200 points. Nvidia (NVDA) stock was up marginally and on track to build on its record high from Wednesday. Walgreens Boots Alliance stock (WBA) gained less than 1% in premarket trading on Thursday after the pharmacy chain beat earnings estimates in its fiscal third quarter. Store closures and cost-cutting efforts boosted Walgreens' profits to $0.38 per share, ahead of Bloomberg-compiled estimates of $0.31 per share. Walgreens reported revenue of $39 billion, beating estimates for $36.8 billion. CEO Tim Wentworth noted that the company remains focused on its turnaround plan. Walgreens is being taken private by Sycamore Partners in a $10 billion deal expected to close later this year. Read more here. Weekly claims for unemployment benefits slipped from their highest level in eight months during the first full week of June while the number of Americans filing for unemployment insurance on an ongoing basis reached the highest level since November 2021. Data from the Department of Labor released Thursday showed 1.974 million continuing claims were filed in the week ending June 14, up from 1.937 million the week prior and the highest level seen since November 2021. Economists see an increase in continuing claims as a sign that those out of work are taking longer to find new jobs. The data release also showed 236,000 initial jobless claims were filed in the week ending June 21, below 246,000 the week prior. The data's release comes as the US labor market continues to show signs of slowing. Read more: What are jobless claims, and why do they matter? Platinum (PL=F) futures surged to their highest level since 2014, rising more than 5% at one point to as high as $1,411.80 per ounce. Year to date, platinum futures have climbed around 56% as supply concerns have driven the metal higher. Prices for palladium (PA=F), which is sometimes used as an alternative to platinum, also increased more than 3% to trade $1,107.50. Bloomberg reports: Gold (GC=F) futures also opened higher after nearing record highs on June 13 and June 16 as investors wait for more clarity on whether the Israel-Iran ceasefire will hold. Read more here. Yahoo Finance's Hamza Shaban writes in today's Morning Brief: Read more here. Nike (NKE) is set to report its fiscal fourth quarter earnings after market close today, and Wall Street is bracing for more poor results. Yahoo Finance's Brooke DiPalma reports: Read more here. Economic data: First quarter GDP; First quarter personal consumption; Initial jobless claims (week ended June 21); Pending home sales (May); Durable goods orders (May preliminary); Wholesale inventories (May preliminary) Earnings: McCormick (MKC), Nike (NKE), Walgreens Boots Alliance (WBA) Here are some of the biggest stories you may have missed overnight and early this morning: Meta's quest to dominate the AI world Trump made a final case for his big tax bill. Economists aren't buying it. Nike earnings after the bell: Wall Street is hoping for progress Nvidia leaps to new high in remarkable turnaround Dollar slides as Trump reportedly eyes replacing Powell early China tech giants are ramping up M&A with Beijing's blessing Here are some top stocks trending on Yahoo Finance in premarket trading: Nvidia (NVDA) stock was up 1% in premarket trading on Thursday after notching a new record high of $154.31 on Wednesday. Micron (MU) stock was up over 2% before the bell on Thursday after delivering third-quarter results and fourth-quarter forecasts that exceeded estimates. But despite the upbeat results, Wall Street was not impressed. Coinbase (COIN) rose 1% in premarket trading after touching a 52-week high the day before. Bernstein analysts dubbed the cryptocurrency platform a "one-stop Amazon" of crypto services. The dollar (DX=F) has hit a low against the euro that hasn't been reached in over three and a half years. Concerns over Trump's tariff impacts on US economic stability, combined with a loss of trust over the ability of the Fed to remain independent, have consistently applied downward pressure on the greenback. Reuters reports: Read more here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Associated Press
27 minutes ago
- Associated Press
Lawmakers remove ‘revenge' tax provision from Trump's big bill after Treasury requests its removal
WASHINGTON (AP) — Congressional Republicans agreed to remove the so-called revenge tax provision from President Donald Trump's big bill Thursday after Treasury Secretary Scott Bessent asked members of Congress to do so earlier in the day. The Section 899 provision would allow the federal government to impose taxes on companies with foreign owners, as well as investors from countries judged as charging 'unfair foreign taxes' on U.S. companies. The measure was expected to lead many companies to avoid investing in the U.S. out of concern that they could face steep taxes. Bessent said in an X post that he made the request to lawmakers after reaching an agreement with other countries on the Organization for Economic Co-operation and Development Global Tax Deal. He said that after 'months of productive dialogue,' they would 'announce a joint understanding among G7 countries that defends American interests.' After he made the request, Senate Finance Committee Chairman Mike Crapo, R-Idaho, and House Ways and Means Committee Chairman Jason Smith, R-Missouri, said 'we will remove proposed tax code Section 899' from the bill and '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, estimates that the provision would cost the U.S. 360,000 jobs and $55 billion annually over 10 years in lost gross domestic product. The Global Business Alliance was among several groups that signed a letter addressed to Senate Majority Leader John Thune of South Dakota and Senate Finance Committee Chairman Mike Crapo of Idaho, warning of the consequences of Section 899. The removal of the provision adds a wrinkle to Republicans' plans to try to offset the cost of the massive package. The non-partisan Congressional Budget Office estimates that the bill would spike deficits by at least $2.4 trillion over the next decade. Republicans are rushing to finish the package this week to meet the president's Fourth of July deadline for passage. Earlier Thursday, the Senate parliamentarian advised that a Medicaid provider tax overhaul central to the spending bill does not adhere to the chamber's procedural rules, delivering a crucial blow to Republicans, who are counting on big cuts to Medicaid and other programs to offset trillions of dollars in Trump tax breaks. ___
