The post U.S. fund managers wary of investor exit as they urge Congress to amend Section 899 appeared on BitcoinEthereumNews.com.

The Investment Company Institute revealed that the U.S. fund management industry could be collateral damage due to provisions in Section 899. The U.S. fund managers said a provision in Trump’s tax bill could compel foreign firms to withdraw their investments from America.  The “One Big Beautiful Bill Act” passed the U.S. House of Representatives in May, aiming to penalize foreign companies from nations with unfair foreign taxes under Section 899. The tax bill is expected to be passed by Congress in July. The Investment Company Institute has said the U.S. fund management landscape will be collateral damage as a result of the requirements outlined in Section 899. Fund managers also said the tax bill would lead to foreign firms pulling all their U.S. investments out of the country. The fund managers added that European companies investing in dividend-sharing firms would be concerned about their holdings. Section 899 would allow the U.S. to introduce a new tax of up to 20% on foreigners with U.S. holdings, including multinational firms operating in the U.S.  ICI seeks amendments to the tax bill The Investment Company Institute (ICI) has warned about the One Big Beautiful Bill, saying its current form would cause damage to foreign companies. In a letter sent to the Chairman of the Senate Finance Committee, Senator Mike Crapo, the institute revealed that many portfolio investors would likely retreat from U.S. equities to avoid the impact of the tax bill. The ICI added that continuous selling by the foreign companies would depress U.S. equity markets, and both U.S. firms and investors would be affected.  The institute stated that it believes that the current form of Section 899 should clarify its scope. The ICI said the current drafting of the section should avoid discouraging foreign firms from investing in the American equity markets…

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Filed under: News - @ June 10, 2025 12:17 pm