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More new taxes

DrVenture
in Other Investing
https://www.cnbc.com/2025/06/08/revenge-tax-trumps-spending-bill.html

“Wall Street investors are shocked by [Section] 899 and apparently did not see it coming,” James Lucier, Capital Alpha Partners managing director, wrote in a June 5 analysis."

If enacted as written, the provision could have “significant implications for the asset management industry,” including cross-border income earned by hedge funds, private equity funds and other entities, Ernst & Young wrote on June 2.

Passive investment income could be subject to a higher U.S. withholding tax, as high as 50% in some cases, the company noted. Some analysts worry that could impact future investment.

The Investment Company Institute, which represents the asset management industry serving individual investors, warned in a May 30 statement that the provision is “written in a manner that could limit foreign investment to the U.S.”

Comments

  • davidrmorandavidrmoran
    hear
  • Observant1
    edited June 9
    The tax on U.S. investments in Section 899 is imprudent.
    Hopefully this tax will be removed from the final legislation.
    I'll leave it at that...
  • yogibearbullyogibearbull
    Wait for the Senate to go through it. Budget reconciliation process has limitations.
  • a2z
    edited 4:15PM
    in general, these niche stealth taxes pass, and are easily escalated. to most citizens, tax brackets and the std deduction are the only 2 they understand enough to care.

    sometime 'inheritance tax' has sufficient name recognition, but most americans wrongly assume they would be affected (based on 'death tax' and other such anti-progressive tax propaganda)

    what % voters know the existence of :
    amt
    irmaa
    investment tax
    ....

    rarely have such issues been more easily addressed via lobbying, cash or legal service donations, crypto purchases, and open public bribes.
    get to it wealthy special interests!
  • msf
    sometime 'inheritance tax' has sufficient name recognition, but most americans wrongly assume they would be affected (based on 'death tax' and other such anti-progressive tax propaganda)

    And just to prove the point, what the federal government taxes isn't one's inheritance (that's a tax on those inheriting) but on one's estate (the assets of the deceased, whom some call dead:-)).

    Tax Foundation: Estate and Inheritance Taxes by State, 2024
    https://taxfoundation.org/data/all/state/estate-inheritance-taxes/
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