GOP Kills 'Revenge Tax' In Trump's Megabill, Wall Street Breathes Easy

Wall Street analysts are relieved after President Trump's administration dropped the controversial Section 899 "revenge tax" proposal from its fiscal bill. The proposal aimed to penalize foreign countries that discriminate against US companies through digital services taxes and other taxes. Treasury Secretary Scott Bessent announced the decision after productive discussions with international trade partners, which helped "defend American interests." The move is seen as a major sigh of relief for investors, as Section 899 would have raised an estimated $52 billion over 10 years. The decision follows an understanding with G7 countries to exempt US companies from certain taxes, which will enhance growth and investment in the US and beyond. Finance Committee Chairman Mike Crapo and House Ways and Means Committee Chairman Jason Smith issued statements supporting the removal of Section 899 from the bill. Analysts at TD Securities, Deutsche, and Goldman Sachs welcomed the news, noting that it reduces uncertainty and improves the chances of the fiscal package being passed by the July 4th holiday. The Senate looks likely to pass the bill by this weekend, although some unresolved issues could delay passage until early July. The removal of Section 899 is seen as a major victory for US businesses and workers, as it preserves US tax sovereignty and prevents the loss of over $100 billion in taxpayer dollars. Overall, the move is seen as a positive development for the global economy and US investors.