‘Revenge’ tax clause targeting foreign investors worries Wall Street

A tax provision which targets foreign investors in US President Donald Trump’s mammoth spending program has alarmed Wall Street.

The clause would progressively ratchet up financial penalties against people and businesses based in countries that Washington determines have “discriminatory” tax systems.

“Cloaked in technicalities, the implication of the ‘revenge’ measure… is clear,” Bloomberg wrote. The Economist chimed in: “If enacted, this would render America all-but-uninvestable for many foreigners.”

Analysts are divided as to whether the clause will make it into law — the bill was narrowly passed by the House of Representatives, and is currently being examined by the Senate — though one expert noted it has broad Republican support, suggesting it will survive.