‘Revenge Tax’: Trump Bill Hits Allies That Have Digital Taxes

Investors in nations with tax regimes that the US deems unfair would face higher tax rates on income earned in the US if the tax bill that’s making its way to the Senate becomes law.

A section of the bill, which passed the House of Representatives on May 22, takes aim at countries including Canada, the UK, France and Australia that impose “digital services taxes” on large technology companies such as Meta Platforms Inc. It also targets countries using provisions in a multicountry deal for minimum corporate taxes.

The move to target allies with which the US has decades-old ...