Lawmakers scrap ‘revenge’ tax provision from Trump’s big bill after Treasury requests its removal

US Speaker of the House Mike Johnson speaks to the media after the House narrowly passed a bill forwarding President Donald Trump's agenda at the US Capitol on May 22, 2025 in Washington, DC. (AFP)
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Updated 27 June 2025
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Lawmakers scrap ‘revenge’ tax provision from Trump’s big bill after Treasury requests its removal

  • Critics warned that Section 899 of the bill "will hurt the US more than it helps"
  • Global Business Alliance said the section could lead to 700,000 US jobs lost

WASHINGTON: Congressional Republicans agreed to remove the so-called revenge tax provision from President Donald Trump’s big bill Thursday after Treasury Secretary Scott Bessent asked members of Congress to do so earlier in the day.
The Section 899 provision would allow the federal government to impose taxes on companies with foreign owners, as well as investors from countries judged as charging “unfair foreign taxes” on US companies.
The measure was expected to lead many companies to avoid investing in the US out of concern that they could face steep taxes.
Bessent said in an X post that he made the request to lawmakers after reaching an agreement with other countries on the Organization for Economic Co-operation and Development Global Tax Deal. He said that after “months of productive dialogue,” they would “announce a joint understanding among G7 countries that defends American interests.”
After he made the request, Senate Finance Committee Chairman Mike Crapo, R-Idaho, and House Ways and Means Committee Chairman Jason Smith, R-Missouri, said “we will remove proposed tax code Section 899” from the bill and “Congressional Republicans stand ready to take immediate action if the other parties walk away from this deal or slow walk its implementation.”
The removal of the provision will provide “greater certainty and stability for the global economy and will enhance growth and investment in the United States and beyond,” Bessent said in his post.
An analysis by the Global Business Alliance, a trade group representing international companies such as Toyota and Nestlé, estimates that the provision would cost the US 700,000 jobs and $100 billion annually in lost gross domestic product.




Global Business Alliance infographic. (X: @GlobalBiz)

The Global Business Alliance was among several groups that signed a letter addressed to Senate Majority Leader John Thune of South Dakota and Senate Finance Committee Chairman Mike Crapo of Idaho, warning of the consequences of Section 899.
The removal of the provision adds a wrinkle to Republicans’ plans to try to offset the cost of the massive package. The non-partisan Congressional Budget Office estimates that the bill would spike deficits by at least $2.4 trillion over the next decade.
Republicans are rushing to finish the package this week to meet the president’s Fourth of July deadline for passage.
Earlier Thursday, the Senate parliamentarian advised that a Medicaid provider tax overhaul central to the spending bill does not adhere to the chamber’s procedural rules, delivering a crucial blow to Republicans, who are counting on big cuts to Medicaid and other programs to offset trillions of dollars in Trump tax breaks.


A month on, flood-struck Aceh still reels from worst disaster since 2004 tsunami

Men wait to receive privately donated aid in in eastern Aceh regency of Aceh Tamiang, on Dec. 14, 2025. (AFP)
Updated 13 sec ago
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A month on, flood-struck Aceh still reels from worst disaster since 2004 tsunami

  • Aceh accounts for almost half of death toll in Sumatra floods that struck in November
  • Over 450,000 remain displaced as of Friday, as governor extended state of emergency

JAKARTA: Four weeks since floodwaters and torrents of mud swept across Aceh province, villages are still overwhelmed with debris while communities remain inundated, forced to rely on each other to speed up recovery efforts.

The deadly floods and landslides, triggered by extreme weather linked to Cyclone Senyar, hit the provinces of North Sumatra, West Sumatra and Aceh in late November.

Aceh, the westernmost province of Indonesia, was the worst-hit. Accounting for almost half of the 1,137 death toll, a month later more than 450,000 people are still unable to return to their homes, as many struggle to access clean water, food, electricity and medical supplies.

“We saw how people resorted to using polluted river water for their needs,” Ira Hadiati, Aceh coordinator for the Medical Emergency Rescue Committee, or MER-C, told Arab News on Friday.

Many evacuation shelters were also lacking toilets and washing facilities, while household waste was “piling up on people’s lawns,” she added.

In many regions, people’s basic needs “were still unmet,” said Annisa Zulkarnain, a volunteer with Aceh-based youth empowerment organization Svara.

“Residents end up helping each other and that’s still nowhere near enough, and even with volunteers there are still some limitations,” she told Arab News. 

Volunteers and aid workers in Aceh have grown frustrated with the central government’s response, which many have criticized as slow and ineffective.

And Jakarta continues to ignore persistent calls to declare the Sumatra floods a national disaster, which would unlock emergency funds and help streamline relief efforts.

“It seems like there’s a gap between the people and the government, where the government is saying that funds and resources have been mobilized … but the fact on the ground shows that even to fix the bridges, it’s been ordinary people working together,” Zulkarnain said.

After spending the past two weeks visiting some of the worst-affected areas, she said that the government “really need to speed up” their recovery efforts.

Aceh Gov. Muzakir Manaf extended the province’s state of emergency for another two weeks starting Friday, while several district governments have declared themselves incapable of managing the disasters.

Entire villages were wiped out by the disastrous floods, which have also damaged more than 115,000 houses across Aceh, along with 141 health facilities, 49 bridges, and over 1,300 schools.

The widespread damage to roads and infrastructure continue to isolate many communities, with residents traveling for hours on foot or with motorbikes in search of basic supplies.

“Even today, some areas are still inundated by thick mud and there are remote locations still cut off because the bridges collapsed. For access, off-road vehicles are still required or we would use small wooden boats to cross rivers,” Al Fadhil, director of Geutanyoe Foundation, told Arab News.

“From our perspective, disaster management this time around is much worse compared to how it was when the 2004 tsunami happened.”

When the Indian Ocean earthquake and tsunami struck in 2004, Aceh was the hardest-hit of all, with the disasters killing almost 170,000 people in the province.

But MER-C’s Hadiati said that the impact of the November floods and landslides is “more extensive and far worse than the tsunami,” as 18 Acehnese cities and regencies have been affected — about twice more than in the 2004 disaster.

As Friday marks 21 years since the cataclysmic tsunami, Fadhil said the current disaster management was “disorganized,” and lacked leadership and coordination from the central government, factors that played a crucial role after 2004. 

“The provincial and district governments in Aceh, they’ve now done all they could with what they have,” he said.

“But their efforts stand against the fact that there’s no entry of foreign aid, no outside support, and a central government insisting they are capable.”