Section 899 of the new budget bill, which would tax foreign investors, could weaken the dollar and diminish foreign demand for US assets with potentially “destabilizing effects,” according to
- The analysts wrote about legislation that was recently approved by the House of Representatives as
Section 899 , which aims to increase tax rates for individuals and companies from countries whose tax policies the US sees as “discriminatory” - If passed, they “expect reduced appetite for US assets on a flow basis implying higher term premium and wider credit spreads alongside a weaker USD” ...