Wall Street in turmoil: Trump's tax measure could harm investments

Wall Street is deeply concerned about a new tax measure in Donald Trump's budget proposal, as reported by The Financial Times. Article 899, recently approved by the House of Representatives, allows the U.S. government to impose additional taxes on foreign investments. Financial experts warn this could deter foreign investors and harm the U.S. economy.

The measure targets countries with 'unfair tax policies,' including most EU nations, the UK, Canada, and Australia. Foreign companies with U.S. operations, American firms with foreign shareholders, and international investors could all be affected.

Article 899 would increase taxes on dividends and interest by five percentage points annually, reaching 20% over four years. State investment funds, currently tax-exempt, would also face new taxes on their portfolios.

Critics argue the measure could also impact American workers, particularly in cities like Paris (Kentucky) and London (Ohio), where foreign companies operate.