WASHINGTON: Congressional Republicans agreed to remove the so-called revenge tax provision from President Donald Trump’s big bill Thursday after Treasury Secretary Scott Bessent asked members of Congress to do so earlier in the day.
The Section 899 provision would allow the federal government to impose taxes on companies with foreign owners, as well as investors from countries judged as charging “unfair foreign taxes” on US companies.
The measure was expected to lead many companies to avoid investing in the US out of concern that they could face steep taxes.
Bessent said 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 Development Global Tax Deal. He said that after “months of productive dialogue,” they would “announce a joint understanding among G7 countries that defends American interests.”
After he made the request, Senate Finance Committee Chairman Mike Crapo, R-Idaho, and House Ways and Means Committee Chairman Jason Smith, R-Missouri, said “we will remove proposed tax code Section 899” from the bill and “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 economy and will enhance growth and investment in the United States and beyond,” Bessent said in his post.
An analysis by the Global Business Alliance, a trade group representing international companies such as Toyota and Nestlé, estimates that the provision would cost the US 700,000 jobs and $100 billion annually in lost gross domestic product.

The Global Business Alliance was among several groups that signed a letter addressed to Senate Majority Leader John Thune of South Dakota and Senate Finance Committee Chairman Mike Crapo of Idaho, warning of the consequences of Section 899.
The removal of the provision adds a wrinkle to Republicans’ plans to try to offset the cost of the massive package. The non-partisan Congressional Budget Office estimates that the bill would spike deficits by at least $2.4 trillion over the next decade.
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.

CHERNIGIV REGION, Ukraine: Ukraine and Russia exchanged a new group of captured soldiers on Thursday, the latest in a series of prisoner swaps agreed at peace talks in Istanbul earlier this month.
Neither side said how many prisoners were released in the latest exchange.
The two countries pledged to swap at least 1,000 soldiers each during their direct meeting in Istanbul on June 2 but no follow-up talks have been scheduled.
The return of prisoners of war and the repatriation of war dead have been among the few areas of cooperation between the warring sides since Moscow invaded Ukraine in 2022.
“Today, warriors of the Armed Forces, the National Guard, and the State Border Guard Service are returning home,” Ukrainian President Volodymyr Zelensky said on social media.
He shared images of Ukrainian soldiers draped in blue-and-yellow national flags, smiling and tearfully embracing.
AFP reporters in Ukraine’s northern Chernigiv region saw relatives awaiting the prisoner release.
Some family members waved posters of missing or captured soldiers in the hope someone would recognize their loved ones and bring them news.
Svitlana Nosal learned her husband Viktor had been freed.
“It’s such a joy, I don’t know how to describe it, how to put it into words,” she said, laughing and crying in the late afternoon sun.
The majority of those released on Thursday were held captive for more than three years, according to Ukraine’s Coordination Headquarters for the Treatment of Prisoners of War.
Many of them were taken prisoner in Mariupol, a Ukrainian port city that fell to Russian forces in 2022 following a nearly three-month siege, it said.
Russia said its soldiers had been transferred to Belarus and were receiving “psychological and medical care.”
“Another group of Russian servicemen has been returned from territory controlled by the Kyiv regime,” the defense ministry said in a statement.
It posted a video showing freed Russian soldiers draped in their national flag, chanting “Russia, Russia, Russia!“