What's a revenge tax?

By Darian Woods,

Adrian Ma, Cooper Katz McKim, Kate Concannon

Published June 10, 2025 at 9:11 AM EDT

Several proposed taxes in the One Big Beautiful Bill Act would shift how money flows from the U.S. to other countries

For four decades, the US has maintained a consistent policy position: money should be fairly free to come and go in and out of the country. That's changing.

Two sections in the One Big Beautiful Bill Act would add friction. First is a 3.5% tax on immigrants sending money home, commonly known as remittances. Second is what's known as Section 899 or, colloquially, the 'revenge tax'. This one is making Wall Street wary. It would slap extra taxes on people and businesses investing in the U.S. if their home countries were deemed to tax Americans unfairly.

We explain these two taxes that could mark a shift in our free-flowing money era.

Related episodes:
The long view of economics and immigration (Two Indicators) (Apple / Spotify)
The "chilling effect" of deportations (Apple / Spotify)

For sponsor-free episodes of The Indicator from Planet Money, subscribe to Planet Money+ via Apple Podcasts or at plus.npr.org.

Fact-checking by Sierra Juarez. Music by Drop Electric. Find us: TikTok, Instagram, Facebook, Newsletter.

Tags

NPR Podcasts

Darian Woods

Darian Woods is a reporter and producer for The Indicator from Planet Money. He blends economics, journalism, and an ear for audio to tell stories that explain the global economy. He's reported on the time the world got together and solved a climate crisis, vaccine intellectual property explained through cake baking, and how Kit Kat bars reveal hidden economic forces.

See stories by Darian Woods

Adrian Ma

Adrian Ma covers work, money and other "business-ish" for NPR's daily economics podcast The Indicator from Planet Money.

Cooper Katz McKim

Cooper Katz McKim is an Assistant Producer for NPR's daily economics podcast The Indicator from Planet Money. Before The Indicator, McKim reported at NPR Member stations in South Carolina and Wyoming. At Wyoming Public Radio, he filed stories with NPR's Environment And Energy Collaborative on bankruptcies, carbon capture and economic transition. He's won a national Edward R. Murrow Award for Best Use of Sound. More recently, he's served as a podcast producer at Sports Illustrated and the HISTORY Channel. He graduated from Tufts University and now resides in Denver, Colorado, where he spends his time mountain biking and playing jazz piano. [Copyright 2024 NPR]

Kate Concannon

Kate Concannon is the Supervising Senior Editor at The Indicator from Planet Money. She leads this small, collaborative team of hosts, reporters and producers in making sense of crucial, but often complex and confusing, economic news in just 10 minutes a day.