### Treasury Officials Argue Section 899's Impact to GOP Senators

High-ranking Treasury officials are privately informing GOP senators that Section 899 of the House-approved budget legislation is pushing foreign nations towards negotiations, according to representatives from the administration. While opponents label it a "revenge tax," the Trump administration asserts that Section 899 serves as a critical instrument—similar to tariffs—to secure better agreements for American multinational businesses.

On his first day in office, President Trump vowed to dismantle the Biden administration’s plan for a global minimum corporate tax. Trump underscored this by signing an executive order to nullify the plan, stating it "has no force or effect.” Section 899 targets countries that levy taxes on U.S. companies, including a global minimum tax of 15% and a digital services tax.

A coalition of trade associations, spearheaded by the Global Business Alliance, has petitioned Senate Majority Leader John Thune (R-S.D.) and Senate Finance Committee Chair Mike Crapo (R-Idaho) for the elimination of this provision. Despite the controversy, the Trump administration contends to senators that Section 899 might never need to be enacted.

Rep. Jason Smith (R-Mo.), the chair of the House Ways and Means Committee, noted that a measure in President Trump’s proposed tax bill, which targets foreign investors, is intended to maintain checks on other nations. However, Wall Street expresses concerns that such a tax could deter overseas investors from purchasing U.S. assets, especially at a time when they are already cautious about U.S. policies.

The signature legislation, dubbed the "one big, beautiful bill" by Trump, has overcome a significant hurdle by advancing through the House Ways and Means Committee. Nonetheless, the complex choices and necessary compromises in major tax legislation could potentially limit its projected pro-growth impacts. Some provisions in the current iteration of the bill are scheduled to sunset after a few years.

President Trump has also been negotiating a millionaire’s tax, showing support at a $2.5 million threshold after initially opposing it at the $1 million mark. House Speaker Mike Johnson (R-La.) plans to assure Trump on Friday that the House will meet the president's tax priorities, according to a congressional aide.