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Treasury Secretary Scott Bessent has formally asked Congress to delete a controversial provision buried in President Donald Trump’s newest budget plan. The section, known as Section 899, would’ve allowed the US to slam companies and investors from other countries with additional taxes, specifically if those countries imposed harsh tax policies under international agreements. Scott said on Thursday that the rule no longer made sense because parts of the OECD’s Pillar 2 tax regime won’t apply to US companies anymore. According to reporting from the Financial Times, Scott posted on X that the Treasury had requested lawmakers in both the House and Senate to remove the section from the “Big, Beautiful Budget.” The provision was originally designed to hit back at countries using the OECD’s global minimum tax rules to go after US multinationals. Trump signed onto the bill with the rule intact, but the economic and political climate has changed. Scott said the US had reached an understanding with G7 countries after “months of productive dialogue,” making the retaliation part of the bill unnecessary. Treasury walks away from Pillar 2 enforcement Pillar 2 was part of a 2021 deal agreed under former President Joe Biden, meant to enforce a 15% global minimum corporate tax rate. That deal gave countries the power to collect extra taxes if multinational firms weren’t paying enough at home. But now the US says those rules won’t apply to American companies anymore, meaning other countries won’t be able to collect taxes from them under Pillar 2. That’s what made Scott come out and push for the removal of Section 899. The tax had raised alarms in the financial sector. Major banks and investors warned it would drag down corporate investment and cause money to flow out of the US Some even said it could make the…

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Filed under: News - @ June 26, 2025 11:26 pm