Why Trump’s Section 899 ‘Revenge’ Tax Worries Investors

A measure in President Donald Trump’s sweeping domestic policy legislation designed to penalize countries with tax policies the administration considers unfair is causing a stir on Wall Street.

Known as Section 899, the provision would create a new provision in the US tax code that would boost taxes on the US income of non-US-based businesses and individuals. The measure has come to be called the “revenge” tax because it would increase tax rates only for countries whose tax policies the US deems “discriminatory.”