Trump ‘Revenge’ Tax Would Cut Foreign Investment, Congressional Panel Says

Congress’s own official tax scorekeeper is predicting a “revenge” tax buried in Donald Trump’s massive fiscal package would realize Wall Street’s fears and drive foreign investors away from US markets.

The item — introduced in legislation that passed the House last week as Section 899 — would increase tax rates for individuals and companies from countries whose tax policies the US deems “discriminatory.” This includes raising tax rates on passive income, such as interest and dividends, earned by investors who are potentially sitting on trillions in American assets.