Investor Anxiety Over ‘Revenge Tax’ Is Overblown, Barclays Says

A controversial provision in President Donald Trump’s tax-and-spending bill aimed at penalizing countries with “unfair” tax regimes is unlikely to disrupt US bond and stock markets, according to Barclays Capital.

Dubbed a “revenge tax” by the finance community, Section 899 of the budget bill calls for increasing levies for individuals and companies whose home countries’ tax policies the US deems “discriminatory.” The proposal – which received House approval in May and is now under consideration in the Senate as part of the so-called One, Big Beautiful bill — has raised concerns on Wall Street that it may drive away foreign investors at a time when their confidence in US capital markets has already been shaken by the Trump administration’s policies.