Treasury Secretary Scott Bessent asks Congress to strip ‘revenge tax' from Big Beautiful Bill
Treasury Secretary Scott Bessent asked Republicans in Congress on Thursday to remove the so-called 'revenge tax' from President Trump's 'big, beautiful' bill.
The provision would grant Trump the authority to tax foreign holdings of US investments as a way to retaliate against countries imposing new taxes on US companies operating overseas.
Bessent argued that the provision, known as Section 899, was no longer necessary after the Trump administration reached a deal with G7 nations at last week's summit to exempt US companies from a 15% global corporate minimum tax championed by the Biden administration.
Advertisement
'After months of productive dialogue with other countries on the OECD Global Tax Deal, we will announce a joint understanding among G7 countries that defends American interests,' the Treasury secretary wrote on X. 'President Trump paved the way for this historic achievement.'
Tax writers on Capitol Hill welcomed Bessent's announcement and said the tax would be taken out of the bill.
REUTERS
'OECD Pillar 2 taxes will not apply to U.S. companies, and we will work cooperatively to implement this agreement across the OECD-G20 Inclusive Framework in coming weeks and months,' Bessent added. 'I want to thank my G7 counterparts for their partnership and collaboration towards achieving this historic outcome.'
Advertisement
'Based on this progress and understanding, I have asked the Senate and House to remove the Section 899 protective measure from consideration in the One, Big, Beautiful Bill.'
The massive piece of legislation is currently working its way through the Senate.
Sen. Mike Crapo (R-Idaho), the top Republican on the Senate Finance Committee, said the revenge tax provision would be stricken from the bill.
'At the request of @SecScottBessent and in light of this joint understanding to preserve US tax sovereignty and allow US tax laws to co-exist with the Pillar 2 regime, we will remove proposed tax code Section 899 from the One Big Beautiful Bill Act, and we look forward to active engagement with Treasury on these important issues,' Crapo wrote on X.
Advertisement
House Ways and Means Committee Chairman Jason Smith (R-Mo.) called the deal a 'major victory for American workers.'
Some on Wall Street feared that the provision would discourage global investment in the US.
The Senate's version of the revenge tax had been projected to raise more than $50 billion in revenues over 10 years, which would've helped defray the cost of other spending in the bill.
Trump has urged Congress to pass the bill by July 4.
Advertisement
Trump wants Congress to pass his 'big, beautiful' bill by July 4.
AP
Bessent said the agreement struck with G7 partners ' provides greater certainty and stability for the global economy and will enhance growth and investment in the United States and beyond.'
'By reversing the Biden Administration's unwise commitments, we are now protecting our Nation's authority to enact tax policies that serve the interests of American businesses and workers,' he added. 'We are also preserving our tax base, preventing the loss of over $100 billion in American taxpayer dollars according to Treasury estimates and the non-partisan Joint Committee on Taxation.'
'The Trump Administration remains vigilant against all discriminatory and extraterritorial foreign taxes applied against Americans. We will defend our tax sovereignty and resist efforts to create an unlevel playing field for our citizens and companies.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Politico
26 minutes ago
- Politico
Senate Republicans' tax cuts now projected to cost $4.45T
Senate Republicans released updated megabill text late Friday that would make sharp cuts to the Inflation Reduction Act's solar and wind tax credits after a late-stage push by President Donald Trump to crack down further on the incentives. The text would require solar and wind generation projects seeking to qualify for the law's clean electricity production and investment tax credits to be placed in service by the end of 2027 — significantly more restrictive than an earlier proposal by the Senate Finance Committee that tied eligibility to when a project begins construction. The changes came after Trump urged Senate Majority Leader John Thune to crack down on the wind and solar credits and align the measure more closely with reconciliation text, H.R.1, that passed the House, as POLITICO reported earlier on Friday. The changes are likely to put some moderate GOP senators, who have backed a slower schedule for sunsetting those incentives, in a tough position. They'll be forced to choose between rejecting Trump's agenda or allowing the gutting of tax credits that could lead to canceled projects and job losses in their states — something renewable energy advocates are also warning about. 'We are literally going to have not enough electricity because Trump is killing solar. It's that serious,' Sen. Brian Schatz (D-Hawaii) responded on X early Saturday. 'We need a bunch of new power on the grid, and nothing is as available as solar. Everything else takes a while. Meantime, expect shortages and high prices. Stupid.' The revised text would retain the investment and production tax credits for baseload sources, such as nuclear, geothermal, hydropower or energy storage, as proposed in the Finance Committee's earlier proposal. But it would make other significant changes, including extending a tax credit for clean hydrogen production until 2028. The panel's earlier proposal would have eliminated the credit after this year. And despite vocal lobbying by the solar industry, the proposal would maintain an abrupt cut to the tax incentive supporting residential solar power. The committee's earlier proposal would have eliminated that credit six months after the enactment of the bill; now the updated draft proposes repealing it at the end of this year. It would also deny certain wind and solar leasing arrangements from accessing the climate law's clean electricity investment and production tax credits, but, in a notable change, removed earlier language specifically disallowing rooftop solar. And it would move up the timeline for certain rules barring foreign entities of concern from accessing those credits. The bill would move up the termination date for electric vehicle tax credits to Sept. 30, compared to six months after enactment in the earlier Finance text. The credit for EV chargers would extend through June 2026. The new text also provides a bonus incentive for advanced nuclear facilities built in communities with high levels of employment in the nuclear industry. And the bill makes metallurgical coal eligible for the advanced manufacturing production tax credit through 2029. Sam Ricketts, co-founder of S2 Strategies, a clean energy policy consulting group, said the new draft is going to 'screw' ratepayers, kill jobs and undermine U.S. economic competitiveness. 'All just to give fossil fuel executives more profits,' he said. 'Or to own the libs. Insanity.' Josh Siegel contributed to this report.
Yahoo
27 minutes ago
- Yahoo
Senate's ‘big, beautiful bill' faces serious headwinds in the House
The Senate's version of the 'big, beautiful bill' is facing serious headwinds in the House with The Hill learning that at least six House Republicans are currently a 'no' on the framework, a daunting sign for GOP leadership as the Senate races towards a vote. Those six House Republicans, some of whom requested anonymity, are enough opposition to tank the package, as GOP leaders grapple with a razor-thin majority. Rep. Thomas Massie (R-Ky.), who was one of two GOP lawmakers to oppose the House version of the bill last month, is also likely to oppose the Senate's edition, deepening the pocket of resistance in the lower chamber. Republicans can only afford to lose three votes and still clear the legislation, assuming full attendance and united Democratic opposition. 'I support the reasonable provisions in H.R. 1 that protect Medicaid's long-term viability and ensure the program continues to serve our most vulnerable, but I will not support a final bill that eliminates vital funding streams our hospitals rely on, including provider taxes and state directed payments, or any provisions that punish expansion states,' Rep. David Valadao (R-Calif.) wrote in a statement on Saturday. 'President Trump was clear when he said to root out our waste, fraud, and abuse without cutting Medicaid and I wholeheartedly agree,' he continued. 'I urge my Senate colleagues to stick to the Medicaid provisions in H.R. 1 — otherwise I will vote no.' Rep. Jeff Van Drew (R-N.J.) told The Hill that he is also opposed to the bill because of the Medicaid provider tax provision. Rep. Young Kim (R-Calif.) is currently a 'no' on the measure because of the Medicaid language, rollback of solar energy credits and public lands provisions, a source familiar with the matter told The Hill. Rep. Nick LaLota (R-N.Y.), meanwhile, told The Hill that he is against the current version of the package because of the state and local tax (SALT) deduction cap proposal. The legislation would increase the currently $10,000 SALT cap to $40,000 for individuals making $500,000 or less for five years, then snap back to the original number. 'While I support the President's broader agenda, how could I support the same unfair $10k SALT cap I've spent years criticizing?' LaLota said. 'A permanent $40k deduction cap with income thresholds of $225k for single filers and $450k for joint filers would earn my vote.' It is not, however, just moderates who are signaling issues with the Senate bill: Rep. Chip Roy (R-Texas), a member of the conservative House Freedom Caucus, posted an ominous message on X that suggested he was not pleased with the package. 'I will not negotiate via X. But it's important to know that jamming us with a bill before we've had any chance to review the implications of major changes & re-writes, fluid scores, a high likelihood of violating the house framework (deficits) , & tons of swamp buy-offs is bad,' he wrote. The opposition is rising to the surface as Senate Republicans inch closer to holding an initial vote on the 'big, beautiful bill,' which would officially kick off the consideration process and eventually tee up a final vote in the House. It remains unclear, however, if Senate GOP leaders have the votes to move forward. If the motion to proceed passes by a simple majority, the chamber would hold a series of unlimited amendment votes called a vote-a-rama, which could result in changes to the measure. Senate GOP leaders are also still talking to holdouts and could make changes to the bill as written. In the meantime, House Republicans — beginning to review the revised Senate text unveiled overnight — are expressing resistance to the measure, prompting serious questions about whether top GOP lawmakers will be able to enact the legislation by their self-imposed July 4 deadline. Speaker Mike Johnson (R-La.) convened a call with the House Republican Conference Saturday afternoon and urged lawmakers to keep their concerns with the Senate bill private, and instead speak directly with their senators and the White House, two sources told The Hill. Senate Majority Leader Steve Scalise (R-La.) told members that it is unlikely they will have to return to Washington on Monday, the sources said. Tuesday or Wednesday is more realistic, he told lawmakers. One source told The Hill that the call was brief and leadership did not take questions. The main qualm among House Republicans appears to be the Medicaid language in the bill. The Senate's legislation includes a proposal that would effectively cap provider taxes at 3.5 percent by 2031, down from the current 6 percent, but only for the states that expanded Medicaid under the Affordable Care Act. The decrease was initially supposed to begin in 2027, with a 0.5 percent phase down annually, but Senate Republicans overnight changed the text to delay the implementation to 2028. The upper chamber also inserted a provision to create a $25 billion rural hospital relief fund that would be distributed over five years to assuage those concerns. The changes, however, do not seem to be solving all of the GOP's problems, with House Republicans still voicing opposition to the language. Aside from Medicaid, the Senate bill's rollback of green-energy tax credits is an issue for some House Republicans. The revised legislation for the upper chamber slashes tax incentives for wind and solar energy and adds a new tax on future wind and solar projects. Rep. Don Bacon (R-Neb.) would not say how he plans to vote on the bill, but signaled that he is not happy with the Medicaid provisions and green-energy tax credit language. 'Instead of improving the Medicaid and energy portions of [the] House bill it appears the Senate went backwards,' he told The Hill. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
32 minutes ago
- Yahoo
Trump, 3 GOP senators play golf ahead of Saturday's push for megabill vote
As Senate wrestled with whether to begin debate on President Donald Trump's megabill, a few key Republican allies spent part of the afternoon golfing with the president at his nearby club in Northern Virginia. Trump, CIA Director John Ratcliffe and GOP Sens. Eric Schmitt of Missouri, Rand Paul of Kentucky and Lindsey Graham of South Carolina played golf a few hours before the Senate voted to debate the so-called 'Big Beautiful Bill.' Live updates: It's go time for Senate on Trump's megabill. Do they have the votes? Graham posted a photo of himself and Trump on social media as gave the camera a thumbs up. Graham said in a post that he partnered with Trump and Paul to beat Schmitt and Ratcliffe. "Proud to announce no casualties," Graham wrote. "A lot of fun! Big Beautiful Bill on the way." Schmitt posted a similar photo of himself and the president, writing "Big week for President Trump and he crushed it on the golf course this morning as well." Looking forward to beginning the One Big Beautiful Bill soon. Started the day with @POTUS and thanked him for his leadership. Let's Go! — Lindsey Graham (@LindseyGrahamSC) June 28, 2025 White House press secretary Karoline Leavitt told reporters around 2 p.m. that the president was wrapping up lunch and would soon depart the course, located about 25 miles from the White House. Senate Republican leaders launched the debate June 28 that is expected to culminate with a vote June 29 or 30 on the 990-page bill. While Democrats are all expected to vote no on the massive legislative package, the open question going into the debate is whether enough Republicans will end up supporting the Senate's version, which would send it back to the House. Trump has asked Congress to send him the completed bill to sign by July 4. The megabill is stuffed with tax cuts, Medicaid reforms and border security funding, containing several signature campaign promises from Trump and the Republican party. Kathryn Palmer is a national trending news reporter for USA TODAY. You can reach her at kapalmer@ and on X @KathrynPlmr. This article originally appeared on USA TODAY: Trump plays golf ahead Saturday's push for Senate megabill vote
