Lawmakers remove ‘revenge’ tax provision from Trump’s big bill after Treasury Department request

WASHINGTON AP 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 provision that was nixed would have allowed the federal regime 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 countless 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 revealed 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 Evolution Global Tax Deal He revealed that after months of productive dialogue they would announce a joint understanding among G countries that defends American interests Senate Finance Committee Chairman Mike Crapo R-Idaho and House Procedures and Means Committee Chairman Jason Smith R-Mo reported 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 economic activity and will enhance enhancement and outlay in the United States and beyond Bessent stated in his post An analysis by the Global Business Alliance a business group representing international companies such as Toyota and Nestl estimates that the provision would have cost the U S jobs and billion annually over 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 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 Source