Business lobbyists are actively attempting to thwart a tax proposal backed by Republican lawmakers, which aims to penalize companies from nations that seek to impose new taxes on American businesses.
On Monday, Senate Republicans introduced their domestic policy bill featuring the so-called revenge tax targeting foreign firms. This tax would specifically affect companies from countries that comply with a 2021 global minimum tax agreement or impose digital services taxes on U.S. technology firms.
In a related move, House Republicans advanced a bill last month that would implement the new tax swiftly. However, the Senate’s version appears to respond to business apprehensions by delaying its enforcement until 2027.
Should this provision become law, it would significantly escalate tax liabilities for numerous foreign companies operating within the United States, with congressional estimates projecting that it could generate over $100 billion in revenue over the next decade. Detractors warn that this measure could deter foreign investment at a time when the Trump administration is making efforts to attract global capital.