Latest news with #revengetax
Wall Street Journal
2 days ago
- Business
- Wall Street Journal
How to Avoid a ‘Revenge Tax'
Now that Congress has your attention, you may be wondering how to escape the supposed new 'revenge tax' lawmakers are writing. The proposal has stirred up considerable, although disingenuous, alarm in some quarters but rejoice: Escaping it is simple. We speak of Section 899, included in the House version of the budget bill now wending its way across Capitol Hill. It would create a retaliatory surtax with a maximum rate of 20% on nationals (individuals and companies) of countries that impose 'unfair foreign taxes' on U.S. businesses. A recent Wall Street-and-media freakout branded this a protectionist sledgehammer, but it's a narrowly tailored response to specific foreign tax overreaches. Congress is reacting to taxes other governments want to impose on American firms under the aegis of the Organization for Economic Cooperation and Development. Pillar one of the OECD's global corporate-tax project envisions new excess-profits taxes on the world's largest companies, mainly American and largely in tech and pharma. Europe's current crop of digital-services taxes are precursors. Pillar two imposes a 15% corporate alternative minimum tax globally, and allows other jurisdictions to impose 'top-up taxes' if a company's home country doesn't collect enough tax under the rules.
Bloomberg
3 days ago
- Business
- Bloomberg
US Markets Are No Longer Safe for Investments, Carmignac Says
The US has ceased to be a secure destination for foreign investors because of risks stemming from President Donald Trump's tax and spending bill, according to Raphael Gallardo, chief economist at French asset manager Carmignac. Gallardo is the latest market commentator to voice deep concern about Section 899 of the bill. The provision would increase tax rates for individuals and companies from countries whose tax policies the US deems 'discriminatory,' prompting some to dub the measure the 'revenge tax.'
Wall Street Journal
30-05-2025
- Business
- Wall Street Journal
A New ‘Revenge Tax' Aimed at Foreign Investors Is Rattling Wall Street
A retaliatory measure on foreign governments tucked into President Trump's tax bill has investors on edge. The proposed change would give the U.S. power to impose new taxes of up to 20% on foreigners with U.S. investments, hitting governments, individuals and companies with U.S. outposts. It's being called a 'revenge tax' because it's specifically designed to apply only in cases where other countries are deemed to be imposing unfair or discriminatory taxes against U.S. companies.
