America’s Tax on Foreign Investors - Section 899

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As the Senate decides on Donald Trump’s One Big Beautiful Budget, a lesser-known provision tucked into the House-approved bill has drawn attention from Wall Street.

The measure, known as Section 899, would allow the U.S. to add a new tax of up to 20% on foreigners with U.S. investments, including multinational companies operating in the U.S.

Some analysts call the provision a “revenge tax” due to its wording. It would apply to foreign entities if their home country imposes “unfair foreign taxes” against U.S. companies, according to the bill.

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