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Foreign tax provision in Trump budget bill spooks Wall Street

Legislation would erode the appeal of US financial assets, banks and investors say
Section 899 could chill corporate investment and stifle demand for US assets

Wall Street is warning that a little-publicised provision in Donald Trump’s budget bill that allows the government to raise taxes on foreign investments in the US could upend markets and hit American industry.

Section 899 of the bill that passed the House of Representatives last week would allow the US to impose additional taxes on companies and investors from countries that it deems to have punitive tax policies. It could raise taxes on a wide range of foreign entities, including US-based companies with foreign owners, international firms with American branches and investors.

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