### Treasury Secretary Scott Bessent Urges Congress to Remove Controversial 'Revenge Tax' from Trump's Budget Bill - In a significant political move, U.S. Treasury Secretary Scott Bessent has called on Republican lawmakers to eliminate the proposed "revenge tax" from President Trump's comprehensive budget legislation. This tax, officially known as Section 899, would impose levies on foreign investments in response to perceived unfair taxation practices by other countries. Bessent's request comes in light of a recent agreement reached at the G7 summit, which aims to foster international cooperation on tax matters and avoid retaliatory measures that could disrupt global markets [https://nypost.com/2025/06/26/us-news/treasury-secretary-scott-bessent-asks-congress-to-strip-revenge-tax-from-big-beautiful-bill][https://www.theglobeandmail.com/politics/article-us-republicans-agree-to-drop-retaliatory-tax-from-trumps-big-budget]. ### Breakdown of the Current Situation and Legislative Response 1. **Bessent's Request**: Treasury Secretary Scott Bessent has formally requested that Congress remove the "revenge tax" from the budget bill, emphasizing the need for a cooperative international tax environment [https://thehill.com/business/5371931-bessent-calls-on-congress-to-scrap-revenge-tax-from-trump-bill-after-g7-strikes-deal]. 2. **Republican Agreement**: Following Bessent's appeal, Republican lawmakers have shown a willingness to drop the retaliatory tax proposal, aligning with the G7's stance against such measures [https://www.theglobeandmail.com/politics/article-us-republicans-agree-to-drop-retaliatory-tax-from-trumps-big-budget]. 3. **Market Concerns**: The proposed tax has raised alarms among financial markets, with warnings from fund managers and venture capitalists about potential disruptions if the tax were to be implemented [https://www.devdiscourse.com/article/politics/3483528-political-showdown-retaliatory-tax-proposal-threatens-us-budget-legislation]. 4. **Legislative Impasse**: The ongoing debate over the budget bill has created a political standoff, with Bessent's request highlighting the urgency for a resolution to avoid further complications in the legislative process [https://www.staradvertiser.com/2025/06/26/breaking-news/treasury-chief-warns-gop-over-retaliatory-tax-on-global-investors]. ### Supporting Evidence and Market Reactions - **G7 Agreement**: The G7 summit's agreement emphasizes the importance of avoiding retaliatory tax measures, which could lead to trade tensions and market instability [https://thehill.com/business/5371931-bessent-calls-on-congress-to-scrap-revenge-tax-from-trump-bill-after-g7-strikes-deal]. - **Market Sentiment**: Financial analysts have expressed concerns that the "revenge tax" could exacerbate existing market jitters, potentially leading to a downturn in investment and economic growth [https://www.devdiscourse.com/article/politics/3483504-political-showdown-retaliatory-tax-proposal-threatens-us-budget-legislation]. - **Legislative Dynamics**: The political landscape is increasingly fraught, with Bessent's intervention seen as a critical step in steering the budget bill towards a more favorable outcome for both domestic and international stakeholders [https://ca.news.yahoo.com/us-senate-republicans-race-resolve-140711549.html]. ### Conclusion: Navigating the Legislative Landscape - **Key Findings**: 1. **Bessent's Call to Action**: The Treasury Secretary's request to remove the "revenge tax" is a pivotal moment in the ongoing budget negotiations, reflecting a broader commitment to international cooperation on tax issues. 2. **Republican Response**: The willingness of Republican lawmakers to consider Bessent's request indicates a potential shift in legislative strategy, aligning with global economic interests. 3. **Market Stability**: Eliminating the retaliatory tax could help stabilize financial markets, alleviating concerns from investors and promoting a more favorable economic environment. - **Next Steps**: As Congress deliberates on the budget bill, the focus will be on achieving a consensus that balances domestic fiscal needs with international economic relations, ensuring that the U.S. remains a competitive player in the global market [https://ca.news.yahoo.com/bessent-says-asked-lawmakers-remove-201121526.html].