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Dozens of managers of some of the largest companies in the world will travel to Washington this week to defend themselves against a plan to raise taxes on foreign investments in the United States and warn that he could hit millions of American jobs.
The lobby drive aims at a determination In Donald Trump’s budget bill, which would enable the United States to impose additional taxes from companies and investors from countries, which they prove for a punitive tax policy.
Investors, US companies with foreign owners and international companies with American operations could all be affected by § 899 of the legislation that fears that managers could fear that corporate investments could cause a withdrawal and withdrawal from US assets.
Jonathan Samford, President of the Global Business Alliance, said the Financial Times that representatives of around 70 companies will meet members of the congress this week and section 899 will be a “central topic”.
The almost 200 foreign companies of the lobby group in the United States have unsettled the risk of higher taxes, including Shell, Toyota, SAP and LVMH. Many of them fear success in the 8.4 million jobs that they offer in America.
“I think there is growing dynamics to get rid of this provision in the Senate,” said Samford. “The senators recognize that it is counterproductive for the economic vision of the administration, which has aroused a large point in relation to the attempt to receive more investments in the United States.”
A leading Financial Trade Association is also planning that its members are traveling to Washington this week to make civil servants and Republican members of the Senate Banking Committee to argue against § 899.
Beth Zorc, Managing Director of the Institute of International Banker, said: “As adopted by the US representative house, section 899 Foreign direct investments, risk disorders for financial markets and the American jobs in states and municipalities across the country will suppress.”
The US operations of foreign banks draw more than 70 percent of the debt agency for foreign companies in the United States, which corresponds to almost a third of the total dollar debt, said the IIB.
The foreign banks said they awarded more than 1.3 t in 2023.
The IIB, which represents some of the world’s largest banks, including HSBC, BNP Paribas, Royal Bank of Canada, UBS, Bank of China and Mitsubishi UFJ Financial, is expected to advance a one -year delay in tax increases and a reduction in measure.
“We encourage the Senate to express concerns about this provision and to examine changes that help to receive international investments in American jobs and companies,” Zorc told FT.
The measure is aimed at countries with what the United States calls “unfair foreign taxes”. According to the law firm Davis Polk, most EU countries, Great Britain, Australia, Canada and others around the world would be affected.
For foreign investors, section 899 would increase taxes on dividends and interest for US shares and some corporate bonds by 5 percentage points for four years a year. It would also impose taxes on the American portfolio stands of sovereign asset funds that are currently freed.
The Republicans in Congress have searched for ways to keep the costs for Trump’s “large, beautiful” tax bill. According to the non -partisan joint committee for taxation, Section 899 would bring in $ 116 billion in the next decade. Nevertheless, the overall bill would Add $ 2.4Tn According to the congress budget office by 2034 to 2034.
Jason Smith, the chairman of the Committee on Tax and Average tax of Tax-Writing House, said recently that he hoped that section 899 would not be imposed, since other countries would change their laws in response.
“A great concern is that foreign governments that have been concluded on agreements that have been concluded by the bidges are trying to absorb billions of dollars from US companies,” said Smith.
“This is a way to bring you into check so that you can understand that it has consequences for your actions if you do this with us. Hopefully it will never be effective.”
