The executive managers in Washington are meeting to stop the foreign investment tax of Trump

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Dozens of executives from some of the largest companies in the world will travel to Washington this week to retract a plan to raise taxes on foreign investment in the United States, warning that they may reach millions of American jobs.

It targets the pressure engine to rule On the Donald Trump budget bill, which if it is approved by Congress will allow the United States to impose additional taxes on companies and investors from countries that are considered punitive tax policies.

American investors and companies can be affected with foreign owners and international companies that have American operations, with Article 899 of the draft law, which executive managers fear may cause companies’ investments to decrease and retreat from American assets.

Jonathan Samford, head of the Global Business Alliance, told the Financial Times that representatives of about 70 companies will meet with members of Congress this week and Article 899 will be a “central subject.”

The high tax threat has resulted in the instability of nearly 200 companies owned by the foreigners ’foreigners in the United States, which includes Shell, Toyota, SAP and LVMH. Many of them fear a blow to the 8.4MN jobs they provide in America.

“I think there is an increasing momentum to get rid of this ruling in the Senate,” Samford said. “Senate members realize that it is not regular in the economic vision of the administration, which has shown a large point about trying to get more investment for the United States.”

The leading Financial Trade Association also plans to travel to Washington this week to meet Treasury officials and Republican members of the Senate Banking Committee to argue against Article 899.

“As approved by the US House of Representatives, Article 899 will suffocate foreign direct investment, disrupt the financial market of risk, and display American jobs in states and societies throughout the country,” said Beth Zork, CEO of the International Bankers Institute.

IIB said that the American operations of foreign banks include more than 70 percent of the debt issuance for foreign companies in the United States, which represents nearly a third of the total release of the dollar debt.

Foreign banks said they provided more than $ 1.3 million to American companies in 2023, and supported their financing for international companies $ 5.4 million in foreign direct investment in the United States by foreign companies that are taking this, which led to $ 270 billion of revenue.

IIB, which represents some of the world’s largest banks including HSBC, BNP Paribas, Royal Bank of Canada, UBS, Bank of China, Mitsubishi UFJ Financial, will press, to delay one year to the tax height and to reduce the scope of the procedure.

“We encourage the Senate to address concerns about this ruling and consider the amendments that will help maintain international investment in American jobs and companies,” Zorc told FT.

This measure targets the countries that the United States call “unreasonable foreign taxes.” Most countries of the European Union, the United Kingdom, Australia, Canada and others around the world will be affected, according to law firm Devis Polk.

For foreign investors, the 899 section of taxes and benefits will increase on American stocks and some corporate bonds by 5 percent each year for a period of four years. It will also impose taxes on the American wallet possesses for sovereign wealth funds, which are present at the present time.

Republicans in Congress have searched for ways to maintain the cost of Trump’s “large and beautiful” tax bill; Article 899 will collect $ 116 billion during the next decade, according to the non -party joint tax committee. However, the total bill will do it Add 2.4 Tresion To the debts of the United States by 2034, according to the Congress Budget Office.

Jason Smith, head of the committee and means of the class that acquires taxes, said that he recently hoped to impose Article 899 because other countries will change their laws in response.

“There is a great concern that foreign governments, based on the agreements concluded by the Biden administration, are trying to absorb billions of dollars from American companies,” said Smith.

“This is a way to help put them in choosing so that if they do so with American companies, there will be consequences for their behavior. We hope that no valid is valid.”