US Tax Policies Spark Market Jitters and Foreign Revenue Concerns
The proposed Section 899 in Trump's tax bill aims to penalize foreign countries with digital taxes, but it could also increase interest costs for US borrowers by requiring them to gross up payments to cover higher withholding taxes, potentially affecting syndicated loans and foreign lending to US companies. The measure faces political hurdles and has raised concerns among Wall Street analysts about its impact on foreign investment and borrowing costs.