Republicans to Remove Punitive Tax Measure From Megabill After Treasury Secretary’s Request

The measure targets individuals and businesses with ties to ‘discriminatory foreign countries.’ The Treasury chief said it’s unneeded.

Treasury Secretary Scott Bessent speaks at a news conference in Geneva on May 12, 2025. Fabrice Coffrini/AFP via Getty Images

Republicans have agreed to remove a punitive tax provision from the reconciliation bill, following a request from Treasury Secretary Scott Bessent.

Bessent requested that congressional Republicans amend the tax and spending bill to remove what some have termed a “revenge tax” on foreign investments in a series of June 26 posts on X. The secretary said Section 899 of the tax proposal was no longer necessary after he and other U.S. officials spoke to trade partners at the G7 summit.