Treasury Secretary Scott Bessent defends provision in Trump administration's bill to prevent foreign governments from siphoning tax revenue from U.S. companies. The bill includes measures to retaliate against countries imposing unfair taxes on American firms. Corporate lobbyists are targeting the provision, arguing it could lead to retaliatory measures and complicate international investment. The goal is to pressure foreign governments to roll back discriminatory and coercive taxes.
Key Points
The provision aims to pressure foreign governments to reverse discriminatory and coercive tax policies
Corporate lobbyists are trying to weaken or eliminate the provision
The goal is to force other governments to stop imposing unfair taxes on American companies
Pros
Prevents foreign governments from siphoning tax revenue from U.S. companies
Restores American control over trade and tax policy
May generate revenue for the U.S.
Cons
Could lead to retaliatory measures from targeted countries