Latest news with #GlobalTaxDeal
Free Malaysia Today
30-06-2025
- Business
- Free Malaysia Today
US treasury signals G7 deal excluding firms from some taxes
US treasury secretary Scott Bessent said officials will work to implement the agreement in the coming months. (AP pic) WASHINGTON : US treasury secretary Scott Bessent signalled Thursday that a deal is forthcoming among G7 nations allowing US firms to be excluded from certain taxes imposed by other countries. '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,' he said in a series of social media posts. Nearly 140 countries struck a deal in 2021 to tax multinational companies, an agreement negotiated under the auspices of the Organisation for Economic Co-operation and Development (OECD). This deal has two 'pillars', the second of which sets a minimum global tax rate of 15%. 'OECD Pillar 2 taxes will not apply to US companies,' he wrote, adding that officials will work to implement the agreement across the OECD-G20 Inclusive Framework in the coming months. US President Donald Trump has pushed back on the global tax agreement, with Bessent on Thursday pointing to advances on that front. '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,' Bessent added, referring to a bill currently before US lawmakers that would slash social program spending for tax cuts. Section 899 has been dubbed a 'revenge tax', allowing the government to impose levies on firms with foreign owners and on investors from countries deemed to impose unfair taxes on US businesses. The clause sparked concern that it would inhibit foreign companies from investing in the US.
26-06-2025
- Business
Lawmakers remove ‘revenge' tax provision from Trump's big bill after Treasury Department request
WASHINGTON -- Congressional Republicans agreed to remove the so-called revenge tax provision from President Donald Trump's big bill on Thursday 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 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. 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 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.' Senate Finance Committee Chairman Mike Crapo, R-Idaho, and House Ways and Means Committee Chairman Jason Smith, R-Mo., 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, estimates that the provision would have 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, R-S.D., and Crapo warning of the consequences of Section 899. 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. ___
Arab News
26-06-2025
- Business
- Arab News
Lawmakers scrap ‘revenge' tax provision from Trump's big bill after Treasury requests its removal
WASHINGTON: 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 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. 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 US 700,000 jobs and $100 billion annually 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.
Al Arabiya
26-06-2025
- Business
- Al Arabiya
Lawmakers Remove ‘Revenge' Tax Provision From Trump's Big Bill After Treasury Requests Its Removal
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 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. 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 US 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.
The Hill
26-06-2025
- Business
- The Hill
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. ___
