The United States House of Representatives has approved the one major beautiful Bill Act, also known as OBBBA, a budget reconciliation Bill that includes important provisions of the 2017 Tax Reductions and Jobs Act. Wall Street investors shift their focus to ‘revenge tax’ Article 899 of the Bill, which can affect the attraction of US assets. What is section 899? Article 899 of the ‘One Big Beautiful Bill’ contains a clause that allows the possibility to impose a progressive tax tax of up to 20 percent on the passive income of foreign investors, such as dividend or royalties. This levy will be paid by entities such as sovereign funds and businesses that have businesses in the United States, or individuals from countries who impose duties on the US that it considers unfair, including a digital service tax. According to Reuters’ report of Friday, May 30, 2025, George Saravelos, head of FX research at Deutsche Bank, said in a note that this legislation is expected to transform the continued trade war between the US and other world countries in a capital war. “We consider this legislation as the creation of the scope of the US administration to turn a trade war into a capital war if it wants, a development that is very relevant in the context of today’s court decision that limits President Trump over trade policy,” Saravelos said in the note. Why are Wall Street investors worried? US stock market investors are concerned about Article 899 in the ‘One Big Beautiful Bill’ as it is expected to target foreign investors in the United States. This, in turn, could weaken the demand for US government bonds and the US dollar. This comes amid constant uncertainties due to baseline and reciprocal rates imposed by US President Donald Trump over all imports from other world countries, which has led to a tariff war raging so far. If the US Senate passes the bill, the rising tax rate on foreign investors is likely to raise concerns, in addition to the tariff ailments, rising fiscal deficit and balloon debt for the Western nation. Elias Haddad, senior market strategist at Brown Brothers Harriman (BBH), told the news agency: “It will deter foreign investment in US assets at a time when the country increases on foreign capital. In a fortune report, even houses are being ways and commits Jason Smith, which he said in a panel. More like a ‘deterrent’ acts, preventing other countries from cracking down the US firms. Agency is supported.
What is ‘revenge tax’ section 899 of the one big beautiful bill? Why does it make alarms on Wall Street? | Today news
