To The Moon

“One, Big, Beautiful Bill” - What is it?

• It is new US law that lets current Trump administration to charge higher taxes on businesses and investors from countries that have unfair or hostile tax rules against the US.

• On 22 May 2025. the Bill has passed US’s House of Representatives approval by a narrow one vote, due to one Republican abstaining.

• It has been passed to the Senate for final considerations.

• The GOP is currently re-reviewing the One Big Beautiful Bill.

• Senate Republicans are actively discussing potential changes to the bill.

• Several competing groups within the GOP Senate caucus, each with different concerns—ranging from (a) Medicaid and (b) food stamp funding to (c) the repeal of green energy tax credits and the state and (d) local tax (SALT) deduction cap.

The plan is for US Senate leaders to finalize their version of the bill by 4 Jul 2025 - US Independence Day.

Non-US Investors’ Bad News.

What “hidden” tax rule ?

• There is a hidden rule in the US budget bill that could have a huge impact on US stock and bond markets.

• The rule (Section 899) allows US to impose progressive tax on foreign investors’ passive income (eg. dividends & royalties) at a rate that can go as high as +20%.

• This tax applies to people and companies from countries that the US thinks have unfair tax practices against Americans.

Who pays this tax?

• If you are from a country that the US calls a “discriminatory foreign country” (DFC), meaning your country has unfair taxes on the US, you may have to pay this new, higher tax.

• This tax will affect - (a) all foreign investors who own US stocks or bonds, (b) International companies with US branches and (c)

  US companies owned by people from DFC countries.

What it means for Non-US investors ?

• If you are a non-US investor from a country on the US’s DFC list, the dividends you receive from US companies could be taxed at a higher rate of up to +20%.

• This makes it less attractive for foreign investors to put money into US stocks and bonds, because they will get less money after taxes.

How “Section 899” affects US market?

• US stock market notices this new tax rule, and some experts warn it could cause problems for US businesses and US economy.

• Foreign investors are starting to pull their money out of US assets, like government bonds and stocks.

• If fewer foreign investors want to invest in the US, it could become harder for the US to get the money it needs from outside the country.

Summary.

• If you are a non-US investor from a country with what the US calls “unfair” tax rules, you may have to pay more tax on your dividends and other income from US investments.

• This new rule could reduce the amount of money you get from investing in US companies.

My Personal Viewpoints : (mine only)

• I hope this section 899 could be excluded “totally” from the big beautiful bill before it is passed by US Senate.

• Otherwise, US is really getting “petty & personal” when it comes to taxing investors’ that has nothing to do with the country’s government taxation practices.

• How is it that citizens of a DFC country get penalized for an incumbent govt. policies ? It does not makes sense.

• Trump behaves like a dictator, enacting unilateral policy, so much for being a democratic economy.

• He has gone from weaponizing trade to weaponizing US stock market.

• Non-US investors are already paying a hefty withholding tax of 30%, lest the US govt forgets.

• To me, Section 899 is a ticking time-bomb that could explode in an investor’s face, depending on the mood of whichever party (Rep or Dem) is the ruling party.

• Once enacted, Section 899 becomes part of US law and will remain in effect until it is actively repealed or amended by a future act of Congress and signed by then sitting president.

• When implemented, US stock market becomes dimmer & less attractive - seen from afar or closed up.

Is it time to start looking elsewhere for greener pasture before its too late to react ? Retail investors should always have a Plan-B, ready to be executed at short notice - right !

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• Do you think this rule (Section 899) is justifiable coming after US retail investors?

• Do you think US market will become less attractive alternative if Section 899 is enforced by 04 Jul 2025’?

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