Trump’s ‘revenge tax’ could threaten foreign investment into US, analysts say
Foreign investment into the US could be threatened by Donald Trump’s new “revenge” taxes, analysts have warned
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Section 899, as it is called, classes digital service taxes and “diverted profits taxes” as unfair, along with any taxes that target US entities. It would allow US authorities to impose an additional tax starting at 5% and increasing by five percentage points annually, up to 20%.
Max Yoeli, a senior research fellow in the US and the Americas programme at Chatham House, says section 899 “threatens to further alienate foreign investors”.