U.S. Treasury Secretary Scott Bessent has formally urged Congress to eliminate the controversial “revenge tax” provision (Section 899) from President Trump’s sweeping economic legislation, known as the “One Big, Beautiful Bill.” The request follows a breakthrough agreement among G7 nations that renders the retaliatory tax measure unnecessary and potentially harmful.
🔍 What Is the “Revenge Tax”?
Section 899 was designed to allow the U.S. President to impose punitive taxes on foreign companies and investments from countries that, in Washington’s view, unfairly tax American corporations. Supporters called it a tool to defend U.S. tax sovereignty, but critics—including top economists and corporate leaders—warned it would spark international retaliation, disrupt capital markets, and threaten hundreds of thousands of American jobs.
According to economic estimates, the tax could have generated $50–115 billion over the next decade, but at a high cost: it risked pushing away global investment and jeopardizing over 360,000 U.S. jobs.
🌍 Why Bessent Wants It Removed
Bessent’s call to remove the provision comes after a historic agreement among G7 finance ministers to exempt U.S.-headquartered companies from the 15% global minimum tax, established under OECD’s Pillar 2 framework. With American firms no longer facing global top-up taxes abroad, Bessent argues, the revenge tax is redundant and economically dangerous.
“This provision is no longer necessary. Worse—it could do real harm to our competitiveness and credibility,” Bessent told reporters after closed-door meetings with key lawmakers.
🏛️ Congress Responds
Congressional Republicans have responded swiftly to Bessent’s request:
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Senator Mike Crapo, Chairman of the Senate Finance Committee, confirmed that Section 899 will be stripped from the final bill.
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House Ways and Means Chairman Jason Smith praised the move as a win for “American workers and global stability.”
Lawmakers are racing to finalize the bill ahead of the July 4 deadline, as the Trump administration seeks a major legislative victory.
📉 What This Means for the U.S. Economy
Removing the revenge tax:
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Reassures international markets, easing fears of retaliatory tariffs or investment barriers.
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Avoids unnecessary confrontation with allies like Germany, Japan, and the UK.
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Leaves a budget gap of up to $115 billion, prompting lawmakers to consider alternative offsets—including spending cuts or adjustments to other tax provisions.
However, congressional sources note that the tax could be reinstated in the future if G7 nations backtrack on their commitments.
⏭️ What’s Next?
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A final vote on the bill could come as early as this weekend.
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Trump aims to sign the package into law by Independence Day, marking a major fiscal win.
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Treasury and White House officials say they are closely monitoring international compliance with the G7 tax deal to ensure long-term protection for U.S. companies.
✅ Bottom Line
The removal of the “revenge tax” signals a shift away from protectionist retaliation toward global cooperation and economic pragmatism. Secretary Bessent’s intervention clears a key roadblock for Trump’s landmark legislation—and could shape U.S. tax strategy for years to come.
