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What does Trump’s second term for Washington, Business and the world mean

The Treasury has asked the Congress to scrap a provision in the Donald Trump’s major budget bill that allows the US government to increase tax on foreign investment from select countries, reversing a plan that Wall Street warned that it could stop markets.

Treasury Secretary Scott Besant said on Thursday that the Global Minimum tax regime of OECD, known as Pillar 2, will no longer apply to American companies. Consequently, the US President’s “big, beautiful” measures Budget The bill was no longer needed.

Settling On the social media site X, his agency had asked the MPs to remove the provision of Section 899 in the House of Representatives and Trump in the Senate. Section 899 would have allowed the US government to levy additional taxes on companies and investors from countries which had punitive tax policies to be allowed under Pillar 2 regime.

Some banks and investors argued that Section 899 could cause a decline in corporate investment and retreat from American property.

Besant said that the deal on Pillar 2 came after “after months of productive dialogue”.

Pillar 2 taxes created part of an OECD deal, agreed as part of the largest global tax reform for more than a century in 2021.

The second column introduces a global minimum 15 percent corporate tax rate and begins to be effective this year, allows other countries to collect minimal tax if the domestic countries of companies do not.

This is a developing story