Funds May Quit US Over Tax Bill, Former Treasury Official Says

Foreign pension funds may withdraw their US investments if a Republican tax bill that proposes a so-called “revenge tax” on foreign investors is passed, former US Treasury official Scott Levine said Wednesday.

Funds want clarity on how the retaliatory tax would operate and are considering divestment if it’s implemented, which could negatively impact the US economy, Levine, US Treasury’s former deputy assistant secretary for international affairs and tax partner at Baker McKenzie, said. He was speaking at a International Tax Law and Policy Research Network event at King’s College London.

The measure—introduced as Section 899 ...