Fri Jun 27 08:30:00 UTC 2025: Here’s a summary of the text, followed by a news article rewrite:
**Summary:**
The Trump administration is removing a “revenge tax” provision from its tax and spending bill after reaching an agreement with G7 nations. This agreement exempts American companies from penalties related to the 2021 global minimum tax, which the Trump administration opposed. The removal of the revenge tax follows lobbying from international business groups who argued it would harm American workers and investment. Treasury Secretary Bessent states this move protects U.S. tax policy authority and promotes economic growth. The “revenge tax” was designed to penalize countries that adhere to the global minimum tax or impose digital service taxes.
**News Article:**
**Trump Administration Drops “Revenge Tax” After G7 Agreement on Global Minimum Tax**
**Washington D.C.** – The Trump administration is reversing course on a key piece of international tax policy, removing a contentious “revenge tax” provision from its pending tax and spending bill. This decision follows an agreement reached with G7 nations exempting American companies from penalties associated with the 2021 “global minimum tax” deal, brokered by the previous Biden administration.
Treasury Secretary Scott Bessent announced the agreement on Thursday, stating that it provides “greater certainty and stability” for the global economy. “By reversing the Biden administration’s unwise commitments, we are now protecting our nation’s authority to enact tax policies that serve the interests of American businesses and workers,” Bessent said in a social media post.
The so-called “revenge tax” was intended to penalize countries adhering to the global minimum tax agreement or those imposing digital services taxes on American technology companies. International business groups lobbied heavily against the measure, arguing that it would harm American jobs and discourage foreign investment in the United States. Congressional estimates suggested the “revenge tax” could have raised over $50 billion over a decade.
The Trump administration, which has been critical of the global minimum tax, argued it ceded too much control of the U.S. tax base to other nations. Secretary Bessent indicated the U.S. will now work to expand this G7 agreement across the G20 and the rest of the world. The move signals a significant shift in U.S. international tax policy and could have far-reaching implications for global trade and investment.
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