Multi-Industry Business Groups Call for Sec. 899 Removal

WASHINGTON – Many major employers and investors are fearful that Section 899, the retaliatory tax provision in the House of Representatives’ One, Big, Beautiful Bill, will deter investment coming into the U.S. and force businesses to close their operations in the U.S. A coalition of associations representing numerous industries sent a letter to Senate Majority Thune and Finance Committee Chairman Crapo to urge for the removal of this punitive measure.

 

“As the budget reconciliation process advances, we urge you to uphold the pro-growth principles embedded in the Tax Cuts and Jobs Act (TCJA) and avoid tax increases that would undermine American jobs, innovation, and long-term economic growth,” the coalition wrote.

 

“These measures disproportionately impact U.S. subsidiaries of international companies based solely on their global organizational structure in reaction to international tax initiatives such as the OECD’s Pillar Two framework,” the coalition continued. “This discriminatory measure undermines President Trump’s goal to position the U.S. as the best place to do business, with foreign investment as a crucial centerpiece bolstering U.S. economic dominance.”  

 

“The Joint Committee on Taxation’s (JCT) cost estimate confirms as much, expecting the measure to lose nearly $13 billion in revenue in 2033 and 2034,” the coalition added. “The signal is clear, targeted employers will pull back on investment and their operations in the U.S., hurting American workers not foreign governments.  

 

“Rather than advancing measures that risk harming American workers and investment, Congress should reaffirm U.S.’ leadership as the world’s premier destination for business growth and innovation,” the coalition stated. “U.S. employers need a predictable, competitive tax framework that welcomes investment and facilitates job creation.  

 

Joining the Global Business Alliance (GBA) in sending this letter:

Read the full letter.