President Donald Trump’s tax bill could raise taxes on foreign companies, potentially deterring investments from abroad. The provision, known as Section 899, would allow the federal government to impose taxes on foreign-parented companies and investors from countries judged as charging “unfair foreign taxes” on US companies.
The measure could result in job losses of up to 360,000 and $55 billion in lost gross domestic product over 10 years. Industry groups such as the Global Business Alliance, which represents international companies like Toyota and Nestlé, estimate that this provision will have a negative impact on American workers in states like North Carolina, South Carolina, Indiana, Tennessee, and Texas.
The tax could also limit foreign investment to the US, hindering economic growth and benefiting American families. Critics argue that the provision is a punitive measure aimed at foreign governments, but could ultimately harm businesses and consumers instead. The Senate must now decide on the fate of this provision, which has sparked debate about its impact and prospects.
Trump’s approach to taxing imports and foreign profits at higher rates while seeking investments from companies abroad has created a contradiction within his policy agenda. Industry groups and experts warn that this provision could lead to a game of political chicken with trade partners, potentially harming businesses and workers in the US.
Source: https://abcnews.go.com/Business/wireStory/trumps-tax-bill-raise-taxes-foreign-companies-hurting-122697961