Republican Remove ‘Revenge Tax’
Washington, D.C. — In a major pro-growth decision, Congressional Republicans have removed a job-killing foreign investor tax from President Donald Trump’s economic package, shielding the U.S. from steep investment losses and sending a clear message: America is open for business again.
The proposed measure, known as Section 899, would have allowed the IRS to slap harsh penalties on companies with foreign ownership—particularly from nations that unfairly target American firms with high taxes. While originally intended as a bargaining chip, the provision raised red flags among business leaders and job creators.
▶️ Why It Matters to You:
According to the Global Business Alliance, the tax could have cost the U.S. 360,000 jobs and $55 billion in economic output every year—jeopardizing pensions, 401(k)s, and long-term retirement stability for working Americans.
🚨 Global Deal Avoids Economic Slowdown
Treasury Secretary Scott Bessent intervened personally, asking lawmakers to strike the provision after finalizing a major international agreement under the OECD Global Tax Framework. In a public statement, Bessent said months of negotiation led to a “joint understanding among G7 countries that defends American interests.”
“This move brings stability, predictability, and confidence back to global markets—and to Main Street America,” Bessent wrote on X.
🇺🇸 GOP Stands Firm, Prepared to Respond
Republican leaders Sen. Mike Crapo (R-ID) and Rep. Jason Smith (R-MO), who head the Senate Finance and House Ways and Means Committees, agreed to remove the provision—but warned they’ll act fast if foreign nations backpedal.
“If other countries renege on this deal or delay implementation, Congressional Republicans stand ready to act immediately to protect U.S. interests,” they said.
Their swift action clears the path for President Trump’s America-First tax cuts—aimed at reviving manufacturing, boosting small businesses, and restoring financial strength for seniors and families alike.
💥 Senate Hits Procedural Bump—but Momentum Builds
Despite Thursday’s progress, the broader economic package faced a temporary hurdle when the Senate parliamentarian rejected a key Medicaid provider tax provision, citing rule violations. Still, GOP leaders remain confident they’ll meet President Trump’s July 4th deadline, delivering patriotic economic relief in time for Independence Day.
📊 Key Takeaways:
- Section 899 foreign tax was removed to protect jobs and attract investment.
- 360,000 U.S. jobs and $55B GDP loss averted, according to analysis.
- Trump’s pro-growth agenda remains on track, despite procedural hurdles.
- GOP remains vigilant against foreign tax abuses.
Bottom Line: President Trump and GOP leaders are once again proving they’re serious about protecting American jobs, retirement accounts, and economic sovereignty—putting America First, where it belongs.
