House retaliatory measure may sap revenue, investment

Retaliatory Taxes Could Spur Foreign Companies to Divest From US

A new retaliatory measure included as part of the House’s mammoth tax package eventually will lose money for the US, raising concerns about the future of foreign direct investment and economic growth in the US.

The House’s legislation creates Section 899 in the tax code to hit back against countries imposing discriminatory levies against American companies. It’s expected to bring in billions in revenue over the next several years. But starting in the 2030s, the provision will start costing the US billions, according to an estimate from the Joint Committee ...