Section 899

lon_don

What do you think will be the impact of Section 899 (of Trump's "Big, beautiful bill") which just passed US House vote ?

https://www.gtlaw.com/en/insights/2025/5/section-899-proposed-legislation-would-increase-us-tax-rates-on-many-foreign-individuals-companies-and-governments

Perplexity says

https://www.perplexity.ai/search/as-uk-citizen-uk-fiscal-reside-YuvW3.STTc2QCvqBWPxgAA

InvesterJones

I guess it primarily makes withholding tax a little more unpredictable - non-US listings may rejoice.

poseidon1

lon_don said:

What do you think will be the impact of Section 899 (of Trump's "Big, beautiful bill") which just passed US House vote ?

https://www.gtlaw.com/en/insights/2025/5/section-899-proposed-legislation-would-increase-us-tax-rates-on-many-foreign-individuals-companies-and-governments

Perplexity says

https://www.perplexity.ai/search/as-uk-citizen-uk-fiscal-reside-YuvW3.STTc2QCvqBWPxgAA

Between you and me, the bigger picture is how the international investing community are reacting to this latest sign of American profligacy by the continuing downgrading of US Treasuries and softening of the dollar.

Article below, particularly insightful on this issue, and the parallel weakening ( for different reasons ) of British and Japanese bonds.

https://unherd.com/newsroom/us-bond-sell-off-is-creating-a-debt-spiral/

UK in a particularly questionable position in all this.

In conjunction with its own weakening sovereign debt situation, many UK based institutions, wealth managers, banks and pension funds have significant exposure to the worsening US position by collectively being the 2nd largest owner of American sovereign debt, having recently beaten the Chinese into third position - see link below

https://www.idnfinancials.com/news/54743/uk-overtakes-china-as-second-largest-holder-of-us-debt#:~:text=WASHINGTON – The latest report from,holdings reaching USD 779.3 billion.

I suppose as investors we should be cognizant of the larger geopolitical forces at play which directly and indirectly effect performance and returns on our investment choices especially if employing a simple buy and hold strategy. 

InvesterJones

poseidon1 said:

lon_don said:

What do you think will be the impact of Section 899 (of Trump's "Big, beautiful bill") which just passed US House vote ?

https://www.gtlaw.com/en/insights/2025/5/section-899-proposed-legislation-would-increase-us-tax-rates-on-many-foreign-individuals-companies-and-governments

Perplexity says

https://www.perplexity.ai/search/as-uk-citizen-uk-fiscal-reside-YuvW3.STTc2QCvqBWPxgAA

Between you and me, the bigger picture is how the international investing community are reacting to this latest sign of American profligacy by the continuing downgrading of US Treasuries and softening of the dollar.

Article below, particularly insightful on this issue, and the parallel weakening ( for different reasons ) of British and Japanese bonds.

https://unherd.com/newsroom/us-bond-sell-off-is-creating-a-debt-spiral/

UK in a particularly questionable position in all this.

But UK bonds strengthened today in response didn't they? 10yr is up about 0.38%

EdSwippet

This seems like a weaker version of Section 891, which is already established law, having existed since at least 1959:

"Whenever the President finds that, under the laws of any foreign country, citizens or corporations of the United States are being subjected to discriminatory or extraterritorial taxes, the President shall so proclaim and the rates of tax imposed by sections 1, 3, 11, 801, 831, 852, 871, and 881 shall, for the taxable year during which such proclamation is made and for each taxable year thereafter, be doubled in the case of each citizen and corporation of such foreign country; but the tax at such doubled rate shall be considered as imposed by such sections as the case may be."

Already threatened unilaterally by you-know-who as far back as January:

President Open to Doubling Tax Rates on Citizens, Corporations of Certain Foreign Countries