Latest news with #Barthold
Yahoo
30-05-2025
- Business
- Yahoo
Trump ‘Revenge' Tax Would Cut Foreign Investment, Congressional Panel Says
(Bloomberg) -- Congress's own official tax scorekeeper is predicting a 'revenge' tax buried in Donald Trump's massive fiscal package would realize Wall Street's fears and drive foreign investors away from US markets. NYC Congestion Toll Brings In $216 Million in First Four Months Now With Colorful Blocks, Tirana's Pyramid Represents a Changing Albania The Economic Benefits of Paying Workers to Move Billionaire Steve Cohen Wants NY to Expand Taxpayer-Backed Ferry NY Wins Order Against US Funding Freeze in Congestion Fight The item — introduced in legislation that passed the House last week as Section 899 — would increase tax rates for individuals and companies from countries whose tax policies the US deems 'discriminatory.' This includes raising tax rates on passive income, such as interest and dividends, earned by investors who are potentially sitting on trillions in American assets. Wall Street analysts are warning the provision would create another disincentive for foreign investors at a time when their once ironclad confidence in Treasury bonds and other US assets has already been shaken by Trump's erratic trade policies and the nation's deteriorating fiscal accounts. Congress's nonpartisan Joint Committee on Taxation, charged with producing official revenue forecasts for the legislation, assessed it would lead to a 'decline in foreign demand for US direct and portfolio investment' and 'general avoidance and compliance behavior' by foreign companies in response to the retaliatory taxes, Thomas Barthold, the JCT's chief of staff, said in a statement to Bloomberg Tax in response to questions about the committee's estimates. As a result of that, and its effects on US tax receipts and US asset values, revenues from the proposal are projected to decline beginning in 2028 and turn into a loss in the last years of the 10-year budget window that the JCT examined, Barthold told Bloomberg Tax. The JCT has estimated the provision will bring in $116.3 billion in revenue over the next 10 years. But the committee projected it would ultimately lower annual US tax revenues by $12.9 billion in 2033 and 2034. Barthold said the reduced profitability of foreign-headquartered companies would reduce baseline US tax receipts. He added that lower foreign demand for US investment would also reduce US asset values. Those effects 'dominate' the revenues collected under the retaliatory tax plan in the last years of the 10-year window, leading to the revenue loss, he said. For now, the market reaction to Section 899 appears muted at best. Still, US assets as a whole have been underperformers this year as Trump's policies put a dent in the narrative of the 'America exceptionalism.' Long-term Treasury yields have catapulted higher this year and the value of the US dollar has dropped by about 7%, according to the Bloomberg Dollar Index. Moody's Ratings downgrade of the US government's credit rating this month has also added to a 'Sell America' trade. Foreign investment in US long-term securities, including stocks and bonds, amounts to around $31 trillion. And while foreign accounts' share of US Treasury debt has slid in the last decade, they still hold about a third of the near $29 trillion outstanding. 'A foreign tax provision in the One Big Beautiful Bill Act is alarming,' wrote Elias Haddad, a strategist at Brown Brothers Harriman & Co. in a note. 'If the bill as presently written takes effect, it would deter foreign investment in US assets at a time when the country faces increasing reliance on foreign capital to finance its ballooning debt.' House Ways and Means Committee Chair Jason Smith, whose committee handled the measure's tax components, said he hopes the provision will serve as a deterrent to foreign governments and won't be deployed. He described the provision as an effective tool for retaliating against countries that try to crack down on US businesses. 'A big concern is that foreign governments, based on agreements entered by the Biden administration, is trying to suck away billions of dollars from US companies,' Smith said during a panel in California, referring to countries that are seeking to impose digital services taxes on large technology companies such as Meta Platforms Inc. and Alphabet Inc.'s Google. 'In fact, $120 billion from US companies. This is a way to help put them in check so that they understand if they do that to US businesses, there will be consequences for their actions.' Smith added the tax writers are hoping that punitive tax rate in Section 899 isn't imposed. 'Hopefully it'll never take effect,' Smith said. The Trump tax provision would boost the federal income tax rate on passive US income earned by investors and institutions based in the targeted countries, first by 5 percentage points, then rising by another five points each year to a maximum of 20 points above the statutory rate. YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Mark Zuckerberg Loves MAGA Now. Will MAGA Ever Love Him Back? Millions of Americans Are Obsessed With This Japanese Barbecue Sauce How Coach Handbags Became a Gen Z Status Symbol Will Small Business Owners Knock Down Trump's Mighty Tariffs? ©2025 Bloomberg L.P. 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Yahoo
14-05-2025
- Business
- Yahoo
Trump's Prized Tax Bill Doesn't Do Anything He Promised
Donald Trump's tax promises for the middle and working classes are actually not in his tax proposal. The president has trumpeted the extension of his 2017 tax plan, attempting to make the bill more palatable to non-millionaires by claiming that it would end tax on tips, overtime, and Social Security benefits. But as it turns out, none of that is actually in the text of the bill. During a heated exchange between Representative Tom Suozzi and Thomas Barthold, the chief of staff on the Joint Committee of Taxation, it became abundantly clear that none of those promises would be happening. 'On tips—the president said, 'Your tips will be a 100 percent yours.' Does this tax bill continue the payroll tax on people's tips?' asked Suozzi. 'Yes it does,' said Barthold. 'Overtime. The president said, 'Your overtime will be tax-free.' Does this bill continue the payroll tax on overtime?' continued Suozzi. 'It does not exempt overtime from payroll tax,' said Barthold. 'The president said he's going to remove taxes from Social Security,' pressed Suozzi. 'Does this bill remove taxes on Social Security benefits?' 'The legislation provides an increased exception amount—' Barthold began, before Suozzi interrupted. 'But does it remove taxes on Social Security benefits?' reiterated Suozzi. 'It does not change Social Security,' Barthold said. And while middle- and working-class Americans get shafted by the bill on what Trump promised them, the wealthy will continue to benefit from the president's bill—even if it's not what he claims he wants. NBC reported Thursday that Trump pressed House Speaker Mike Johnson to raise the top income tax rate to close the carried interest loophole, raising the 37 percent tax rate to 2017 levels—39.6 percent—for Americans making $2.5 million or more. But when Suozzi asked if the reconciliation bill included 'an increase in the tax rate for the wealthiest people in the United States of America,' the answer wasn't so promising. 'The legislation before you extends permanently the top bracket at 37 percent,' Barthold said. 'So it does not return it to what it was at 39.6 [percent]?' Suozzi continued. 'That is correct, Mr. Suozzi,' Barthold responded.
Yahoo
14-05-2025
- Business
- Yahoo
TikTok reshuffled its US content council, adding conservative and pro-free speech voices to the lineup
The council helps guide TikTok's policies on hate speech, misinformation, and user safety. Some new members have spoken in support of lighter-touch moderation and more free speech protections. The move follows recent shifts at Meta and X toward looser content rules and free speech-focused policies. TikTok has shaken up its US Content Advisory Council, adding new voices who support broad free-speech protections and have been critical of government pressure on online platforms. The eight-person council, formed in 2020, brings in independent experts on technology and safety to advise on TikTok's policies around child protection, hate speech, misinformation, and bullying. The reshuffle added three new members, with two of them having libertarian or conservative backgrounds. The three members who left the council brought expertise in technology policy, tech ethics, and political communication. The change appears to have occurred in the last two months. According to the Wayback Machine, an internet archive tool, a previous version of the page listing the former members was live as recently as March. One of the new members is David Inserra, a fellow for free expression and technology at the Cato Institute, a libertarian think tank. According to his bio, he researches issues like "online content policies and moderation, and the harmful impacts of censorship on individuals, companies, technology, and society." In a 2024 Cato blog post he coauthored, Inserra argued that "the First Amendment does protect misinformation and hate speech." Inserra previously spent nearly eight years at the Heritage Foundation as a policy analyst focused on homeland security and cyber policy. In 2023 — after Inserra left — the Heritage Foundation published Project 2025, a 900-plus-page conservative policy agenda that includes proposals to eliminate the Department of Education and restrict federal efforts to combat misinformation. On LinkedIn, he describes himself as an "Advocate for free expression online." Corbin Barthold, internet policy counsel and director of appellate litigation at TechFreedom, also joined the council. TechFreedom is a libertarian-leaning think tank focused on tech policy. Barthold has been critical of the Trump administration's policies and outspoken against efforts to ban TikTok, especially the national security rationale behind it. In a January post on X, he wrote: "'National security' in this context is code for 'afraid of speech.'" The third new member is Desmond Upton Patton, a professor at the University of Pennsylvania and founding director of the research initiative SAFElab. His work focuses on how social media affects mental health, trauma, grief, and violence, particularly for youth and adults of color. TikTok, Barthold, and Patton did not respond to BI requests for comment. Inserra was not immediately available for comment. On its website, TikTok says the council "represents a diverse array of backgrounds and perspectives" and includes experts in youth safety, free expression, hate speech, and other safety issues. The company adds that the council helps inform its policies, product features, and safety processes, stating: "We work to ensure our policies and processes are informed by a diversity of perspectives, expertise, and lived experiences." The TikTok council reshuffle follows recent moves by other social platforms to reframe their approaches to free speech and content moderation, especially under increased political scrutiny. In January, Meta replaced its US third-party fact-checking program with a community-notes system modeled after the one used by Elon Musk's X — a shift many observers saw as a political repositioning. That same month, Meta appointed UFC CEO and longtime Donald Trump ally Dana White to its board of directors. Like Meta and X, TikTok is testing more transparent alternatives to content takedowns. In April, TikTok began piloting "Footnotes", a tool that lets eligible users add clarifying context beneath videos without removing them. The feature is being trialled in the US and will work alongside TikTok's existing partnerships with its existing fact-checking network. TikTok's future in the US has remained uncertain since April 2024, when Congress passed a law requiring ByteDance to divest its US operations or face a nationwide ban. Trump, who once pushed to ban TikTok, told NBC's Meet the Press earlier this month that he has a "warm spot in his heart" for the app, and suggested he might grant another extension if the company fails to find a buyer before the revised June 19 deadline. Read the original article on Business Insider
Business Insider
14-05-2025
- Politics
- Business Insider
TikTok reshuffled its US content council, adding conservative and pro-free speech voices to the lineup
TikTok has shaken up its US Content Advisory Council, adding new voices who support broad free-speech protections and have been critical of government pressure on online platforms. The eight-person council, formed in 2020, brings in independent experts on technology and safety to advise on TikTok's policies around child protection, hate speech, misinformation, and bullying. The reshuffle added three new members, with two of them having libertarian or conservative backgrounds. The three members who left the council brought expertise in technology policy, tech ethics, and political communication. The change appears to have occurred in the last two months. According to the Wayback Machine, an internet archive tool, a previous version of the page listing the former members was live as recently as March. One of the new members is David Inserra, a fellow for free expression and technology at the Cato Institute, a libertarian think tank. According to his bio, he researches issues like "online content policies and moderation, and the harmful impacts of censorship on individuals, companies, technology, and society." In a 2024 Cato blog post he coauthored, Inserra argued that "the First Amendment does protect misinformation and hate speech." Inserra previously spent nearly eight years at the Heritage Foundation as a policy analyst focused on homeland security and cyber policy. In 2023 — after Inserra left — the Heritage Foundation published Project 2025, a 900-plus-page conservative policy agenda that includes proposals to eliminate the Department of Education and restrict federal efforts to combat misinformation. On LinkedIn, he describes himself as an "Advocate for free expression online." Corbin Barthold, internet policy counsel and director of appellate litigation at TechFreedom, also joined the council. TechFreedom is a libertarian-leaning think tank focused on tech policy. Barthold has been critical of the Trump administration's policies and outspoken against efforts to ban TikTok, especially the national security rationale behind it. In a January post on X, he wrote: "'National security' in this context is code for 'afraid of speech.'" The third new member is Desmond Upton Patton, a professor at the University of Pennsylvania and founding director of the research initiative SAFElab. His work focuses on how social media affects mental health, trauma, grief, and violence, particularly for youth and adults of color. TikTok, Barthold, and Patton did not respond to BI requests for comment. Inserra was not immediately available for comment. On its website, TikTok says the council "represents a diverse array of backgrounds and perspectives" and includes experts in youth safety, free expression, hate speech, and other safety issues. The company adds that the council helps inform its policies, product features, and safety processes, stating: "We work to ensure our policies and processes are informed by a diversity of perspectives, expertise, and lived experiences." It's not just TikTok The TikTok council reshuffle follows recent moves by other social platforms to reframe their approaches to free speech and content moderation, especially under increased political scrutiny. In January, Meta replaced its US third-party fact- checking program with a community-notes system modeled after the one used by Elon Musk's X — a shift many observers saw as a political repositioning. That same month, Meta appointed UFC CEO and longtime Donald Trump ally Dana White to its board of directors. Like Meta and X, TikTok is testing more transparent alternatives to content takedowns. In April, TikTok began piloting " Footnotes", a tool that lets eligible users add clarifying context beneath videos without removing them. The feature is being trialled in the US and will work alongside TikTok's existing partnerships with its existing fact-checking network. TikTok's future in the US has remained uncertain since April 2024, when Congress passed a law requiring ByteDance to divest its US operations or face a nationwide ban. Trump, who once pushed to ban TikTok, told NBC's Meet the Press earlier this month that he has a " warm spot in his heart" for the app, and suggested he might grant another extension if the company fails to find a buyer before the revised June 19 deadline.
