Wall Street warns that the timing of Trump extra taxes on foreign investors is poor
The post Wall Street warns that the timing of Trump extra taxes on foreign investors is poor appeared on BitcoinEthereumNews.com. Wall Street is raising alarm over a largely unnoticed clause in the budget bill championed by former President Donald Trump. Section 899, tucked into the measure that cleared the House of Representatives last week, would let Washington impose extra taxes on foreign investors in the United States. Under Section 899, the government could impose higher taxes on companies and investors from nations it labels as having “punitive tax policies.” That would include U.S. firms with overseas owners, international corporations operating American branches, and individual foreign investors. Critics warn it could unsettle markets and harm American industry. The goal is to counter what the U.S. regards as unfair tariffs abroad, but opponents say the timing could not be worse. Greg Peters, co-chief investment officer at PGIM Fixed Income, described the change as “a market-spooking event, hitting already fragile confidence, particularly from foreign investors.” He added, “It’s all self-inflicted wounds at a time when you have a lot of debt that needs to get financed here. So the timing is really quite poor.” A senior executive at a major Wall Street bank shared Peters’s unease. “This is one of the more worrisome ideas to have come out of DC this year,” the executive said. “If it goes forward, it will definitely cool foreign investment in the US.” Analysts at Morgan Stanley noted that Section 899 would likely put downward pressure on the dollar and “disincentivise foreign investment.” JPMorgan, meanwhile, pointed out that the provision carries “significant implications for both US and foreign corporations.” Countries affected by Section 899 may include Australia, Canada, the UK, and EU countries According to law firm Davis Polk, most European Union countries, the United Kingdom, Australia, Canada, and others would fall under the scope of Section 899. For these foreign investors, the new rule would raise taxes…
The post Wall Street warns that the timing of Trump extra taxes on foreign investors is poor appeared on BitcoinEthereumNews.com.
Wall Street is raising alarm over a largely unnoticed clause in the budget bill championed by former President Donald Trump. Section 899, tucked into the measure that cleared the House of Representatives last week, would let Washington impose extra taxes on foreign investors in the United States. Under Section 899, the government could impose higher taxes on companies and investors from nations it labels as having “punitive tax policies.” That would include U.S. firms with overseas owners, international corporations operating American branches, and individual foreign investors. Critics warn it could unsettle markets and harm American industry. The goal is to counter what the U.S. regards as unfair tariffs abroad, but opponents say the timing could not be worse. Greg Peters, co-chief investment officer at PGIM Fixed Income, described the change as “a market-spooking event, hitting already fragile confidence, particularly from foreign investors.” He added, “It’s all self-inflicted wounds at a time when you have a lot of debt that needs to get financed here. So the timing is really quite poor.” A senior executive at a major Wall Street bank shared Peters’s unease. “This is one of the more worrisome ideas to have come out of DC this year,” the executive said. “If it goes forward, it will definitely cool foreign investment in the US.” Analysts at Morgan Stanley noted that Section 899 would likely put downward pressure on the dollar and “disincentivise foreign investment.” JPMorgan, meanwhile, pointed out that the provision carries “significant implications for both US and foreign corporations.” Countries affected by Section 899 may include Australia, Canada, the UK, and EU countries According to law firm Davis Polk, most European Union countries, the United Kingdom, Australia, Canada, and others would fall under the scope of Section 899. For these foreign investors, the new rule would raise taxes…
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