I wanted to pass along a new piece titled “The New Retaliation Tax, Section 899” by Cato Institute Director of Tax Policy Studies Adam Michel.

The House-passed reconciliation bill includes a new tax, called Section 899, taking aim at the proliferation of targeted and extraterritorial taxes, legitimized and promoted by the Organisation for Economic Co-operation and Development’s (OECD) two-pillar Inclusive Framework.

Congress’s retaliation tax introduces unnecessary risks to the American economy by directly imposing taxes on inbound investment and delegating new taxing authority to the Trump administration.

The OECD’s targeted taxes are wrong, but so is retaliatory taxation. The two economic costs don’t cancel out; they compound, leaving everyone worse off, Michel says.

If you would like to speak with Michel, please contact pr@​cato.​org to set up an interview.