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yesterday

Republicans Drop ‘Revenge Tax’ After G7 Exempts U.S. Firms

A G7 side-by-side agreement to exempt American companies from the OECD minimum tax prompted GOP leaders to strike Section 899 from the reconciliation bill.

Treasury Secretary Scott Bessent talks to reporters about his lunch meeting with Republican senators and the schedule for getting the Republican megabill to President Donald Trump's desk by July 4, at the Capitol in Washington, Tuesday, June 24, 2025. (AP Photo/J. Scott Applewhite)
U.S. Treasury Secretary Scott Bessent arrives to attend the G7 Leaders' Summit at the Rocky Mountain resort town of Kananaskis, Alberta, Canada, June 15, 2025. REUTERS/Chris Helgren/Pool/File Photo
Treasury Secretary Scott Bessent at a Cabinet meeting at the White House on April 10, 2025.
A man walk past the G7 members flags at the Manoir Richelieu before the G7 Foreign Ministers summit in La Malbaie, Que., in March.

Overview

  • Treasury Secretary Scott Bessent secured G7 backing to carve U.S. firms out of Pillar 2 levies and requested Congress remove Section 899.
  • Senate Finance Chairman Mike Crapo and House Ways and Means Chairman Jason Smith agreed to excise the retaliatory provision and vowed to reimpose it if partners backtrack.
  • G7 nations formally endorsed a side-by-side tax framework that cements the exemption and eases transatlantic tensions over digital services and global minimum taxes.
  • International business groups and Wall Street applauded the decision, saying it averts investor uncertainty that analysts warned could cost up to 360,000 jobs and $55 billion in GDP annually.
  • With the ‘revenge tax’ provision out, Republican leaders are set to advance the One Big Beautiful Bill toward a July 4 passage deadline.