Markus Andrews

The House Republicans’ multi-trillion-dollar spending package includes what analysts are calling a “revenge tax,” known as Section 899.
As drafted, the provision would allow the U.S. to hike levies for countries with “unfair foreign taxes” by 5% per year, capped at 20%.
The measure would also expand the so-called base erosion and anti-abuse tax, or BEAT, which aims to prevent corporations from shifting profits abroad to avoid taxes.

WASHINGTON DC, UNITED STATES – MAY 30: United States President Donald Trump departs at the White House to U.S. Steel’s Irvin Works in West Mifflin, Pennsylvania in Washington D.C May 30, 2025.
Celal Gunes | Anadolu | Getty Images

As the Senate weighs President Donald Trump’s multi-trillion-dollar spending package, a lesser-known provision tucked into the House-approved bill has pushback from Wall Street.
The House measure, known as Section 899, would allow the U.S. to add a new tax of up to 20% on foreigners with U.S. investments, including multinational companies operating in the U.S.

Some analysts call the provision a “revenge tax” due to its wording. It would apply to foreign entities if their home country imposes “unfair foreign taxes” against U.S. companies, according to the bill.
“Wall Street investors are shocked by [Section] 899 and apparently did not see it coming,” James Lucier, Capital Alpha Partners managing director, wrote in a June 5 analysis.
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If enacted as written, the provision could have “significant implications for the asset management industry,” including cross-border income earned by hedge funds, private equity funds and other entities, Ernst & Young wrote on June 2.
Passive investment income could be subject to a higher U.S. withholding tax, as high as 50% in some cases, the company noted. Some analysts worry that could impact future investment.

The Investment Company Institute, which represents the asset management industry serving individual investors, warned in a May 30 statement that the provision is “written in a manner that could limit foreign investment to the U.S.”
But with details pending as the Senate assesses the bill, many experts are still weighing the potential impact — including who could be affected.
Here’s what investors need to know about Section 899.

How the ‘revenge tax’ could work

As drafted, Section 899 would allow the U.S. to hike existing levies for countries with “unfair foreign taxes” by 5% per year, capped at 20%.
Several kinds of tax fall under “unfair foreign taxes,” according to the provision. Those include the undertaxed profits rule, which is associated with part of the global minimum tax negotiated by the Biden administration. The term would also apply to digital services taxes and diverted profits taxes, along with new levies that could arise, according to the bill.

The second part of the measure would expand the so-called base erosion and anti-abuse tax, or BEAT, which aims to prevent corporations from shifting profits abroad to avoid taxes.
“Basically, all businesses that are operating in the U.S. from a foreign headquarters will face that,” said Daniel Bunn, president and CEO of the Tax Foundation. “It’s pretty expansive.”
The retaliatory measures would apply to most wealthy countries from which the U.S. receives direct foreign investment, which could threaten or harm the U.S. economy, according to Bunn’s analysis.
Notably, the proposed taxes don’t apply to U.S. Treasuries or portfolio interest, according to the bill.

‘Strong priority’ for House Republicans

Section 899 still needs Senate approval, and it’s unclear how the provision could change amid alarm from Wall Street.
But the measure has “strong support” from others in the business community, and it’s a “strong priority” for Republican House Ways and Means Committee members, Capital Alpha Partners’ Lucier wrote.
House Ways and Means Committee Chairman Jason Smith, R-Mo., first floated the idea in a May 2023 bill, and has been outspoken, along with other Republicans, against the global minimum tax.

If enacted as drafted, Section 899 could raise an estimated $116 billion over 10 years, according to the Joint Committee on Taxation.
That could help fund other priorities in Trump’s mega-bill, and if removed, lawmakers may need to find the revenue elsewhere, Bunn said.
However, House Ways and Means Republicans may ultimately want foreign countries to adjust their tax policies before the new tax is imposed.
“If these countries withdraw these taxes and decide to behave, we will have achieved our goal,” Smith said in a June 4 statement. More

A wheel loader operator fills a truck with ore at the MP Materials rare earth mine in Mountain Pass, California, January 30, 2020.
Steve Marcus | Reuters

The rare-earth miner MP Materials will enjoy growing strategic value to the U.S., as geopolitical tensions with China make the supply of critical minerals more uncertain, according to Morgan Stanley.
The investment bank upgraded MP Materials to the equivalent of a buy rating with a stock price target of $34 per share, implying 32% upside from Friday’s close.

MP Materials owns the only operating rare earth mine in the U.S. at Mountain Pass, California. China dominates the global market for rare earth refining and processing, according to Morgan Stanley.
“Geopolitical and trade tensions are finally pushing critical mineral supply chains to top of mind,” analysts led by Carlos De Alba told clients in a Thursday note. “MP is the most vertically integrated rare earths company ex-China.”
Beijing imposed export restrictions on seven rare earth elements in April in response to President Donald Trump’s tariffs. It has kept those restrictions in place despite trade talks with U.S.
Trump removed some restrictions Wednesday on the Defense Production Act, which could allow the federal government to offer an above market price for rare earths. MP Materials is the best positioned company to benefit from this, according to Morgan Stanley. Its shares rose more than 5% on Thursday.
MP Materials is developing fully domestic rare earth supply chain in the U.S. and plans to begin commercial production of magnets used in most electric vehicle motors, offshore wind wind turbines, and the future market for humanoid robots, according to Morgan Stanley.
The investment bank expects MP Materials to post negative free cash flow this year and in 2026, but the company has a strong balance sheet should accelerate positive free cash flow from 2027 onward. More

Losing track of an old 401(k) is an ongoing problem as workers change jobs with increased frequency.
Some former employees unknowingly pay thousands of dollars in fees when they leave a position but don’t take their retirement savings with them.

With more Americans job hopping in the wake of the Great Resignation, the risk of “forgetting” a 401(k) plan with a previous employer has jumped, recent studies show. 
As of 2023, there were 29.2 million left-behind 401(k) accounts holding roughly $1.65 trillion in assets, up 20% from two years earlier, according to the latest data by Capitalize, a fintech firm.

Nearly half of employees leave money in their old plans during work transitions, according to a 2024 report from Vanguard.
However, that can come at a cost.
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For starters, 41% of workers are unaware that they are paying 401(k) fees at all, a 2021 survey by the U.S. Government Accountability Office found.
In most cases, 401(k) fees, which can include administrative service costs and fees for investment management, are relatively low, depending on the plan provider. 

But there could be additional fees on 401(k) accounts left behind from previous jobs that come with an extra bite.

Fees on forgotten 401(k)s

Jelena Danilovic | Getty Images

Former employees who don’t take their 401(k) with them could be charged an additional fee to maintain those accounts, according to Romi Savova, CEO of PensionBee, an online retirement provider. “If you leave it with the employer, the employer could force the record keeping costs on to you,” she said.
According to PensionBee’s analysis, a $4.55 monthly nonemployee maintenance fee on top of other costs can add up to nearly $18,000 in lost retirement funds over time. Not only does the monthly fee eat into the principal, but workers also lose the compound growth that would have accumulated on the balance, the study found.
Fees on those forgotten 401(k)s can be particularly devastating for long-term savers, said Gil Baumgarten, founder and CEO of Segment Wealth Management in Houston.
That doesn’t necessarily mean it pays to move your balance, he said.
“There are two sides to every story,” he said. “Lost 401(k)s can be problematic, but rolling into a IRA could come with other costs.”

What to do with your old 401(k)

When workers switch jobs, they may be able to move the funds to a new employer-sponsored plan or roll their old 401(k) funds into an individual retirement account, which many people do.
But IRAs typically have higher investment fees than 401(k)s and those rollovers can also cost workers thousands of dollars over decades, according to another study, by The Pew Charitable Trusts, a nonprofit research organization.
Collectively, workers who roll money into IRAs could pay $45.5 billion in extra fees over a hypothetical retirement period of 25 years, Pew estimated.
Another option is to cash out an old 401(k), which is generally considered the least desirable option because of the hefty tax penalty. Even so, Vanguard found 33% of workers do that.

How to find a forgotten 401(k) 

While leaving your retirement savings in your former employer’s plan is often the simplest option, the risk of losing track of an old plan has been growing.
Now, 25% of all 401(k) plan assets are left behind or forgotten, according to the most recent data from Capitalize, up from 20% two years prior.
However, thanks to “Secure 2.0,” a slew of measures affecting retirement savers, the Department of Labor created the retirement savings lost and found database to help workers find old retirement plans.
“Ultimately, it can’t really be lost,” Baumgarten said. “Every one of these companies has a responsibility to provide statements.” Often simply updating your contact information can help reconnect you with these records, he advised.   
You can also use your Social Security number to track down funds through the National Registry of Unclaimed Retirement Benefits, a private-sector database.

In 2022, a group of large 401(k) plan administrators launched the Portability Services Network.
That consortium works with defined contributor plan rollover specialist Retirement Clearinghouse on auto portability, or the automatic transfer of small-balance 401(k)s. Depending on the plan, employees with up to $7,000 could have their savings automatically transferred into a workplace retirement account with their new employer when they change jobs.
The goal is to consolidate and maintain those retirement savings accounts, rather than cashing them out or risk losing track of them, during employment transitions, according to Mike Shamrell, vice president of thought leadership at Fidelity Investments, the nation’s largest provider of 401(k) plans and a member of the Portability Services Network.
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The Trump administration on Friday asked the Supreme Court to lift a court order to reinstate U.S. Department of Education employees the administration had terminated.
A federal appeals court had refused on Wednesday to lift the judge’s ruling.

A demonstrator speaks through a megaphone during a Defend Our Schools rally to protest U.S. President Donald Trump’s executive order to shut down the U.S. Department of Education, outside its building in Washington, D.C., U.S., March 21, 2025.
Kent Nishimura | Reuters

The Trump administration on Friday asked the Supreme Court to lift a court order to reinstate U.S. Department of Education employees the administration had terminated as part of its efforts to dismantle the agency.
Officials for the administration are arguing to the high court that U.S. District Judge Myong Joun in Boston didn’t have the authority to require the Education Department to rehire the workers. More than 1,300 employees were affected by the mass layoffs in March.

The staff reduction “effectuates the Administration’s policy of streamlining the Department and eliminating discretionary functions that, in the Administration’s view, are better left to the States,” Solicitor General D. John Sauer wrote in the filing.
A federal appeals court had refused on Wednesday to lift the judge’s ruling.
In his May 22 preliminary injunction, Joun pointed out that the staff cuts led to the closure of seven out of 12 offices tasked with the enforcement of civil rights, including protecting students from discrimination on the basis of race and disability.
Meanwhile, the entire team that supervises the Free Application for Federal Student Aid, or FAFSA, was also eliminated, the judge said. (Around 17 million families apply for college aid each year using the form, according to higher education expert Mark Kantrowitz.)
The Education Department cannot be abolished without approval by Congress.

The Trump administration announced its reduction in force on March 11 that would have gutted the agency’s staff.
Two days later, 21 states — including Michigan, Nevada and New York — filed a lawsuit against the Trump administration for its staff cuts.
After President Donald Trump signed an executive order on March 20 aimed at dismantling the Education Department, more parties sued to save the department, including the American Federation of Teachers.
Former President Jimmy Carter established the current-day U.S. Department of Education in 1979. Since then, the agency has faced other existential threats, with former President Ronald Reagan calling for its end and Trump, during his first term, attempting to merge it with the Labor Department.

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The National Oceanic and Atmospheric Administration, or NOAA, predicts a 60% chance of an “above-normal” Atlantic hurricane season, which spans from June 1 to November 30.
The agency forecasts 13 to 19 named storms, including three to five major hurricanes of Category 3 or higher.
Now is the time to check your home insurance policy and make necessary changes, experts say.

PUNTA GORDA – OCTOBER 10: In this aerial view, a person walks through flood waters that inundated a neighborhood after Hurricane Milton came ashore on October 10, 2024, in Punta Gorda, Florida. The storm made landfall as a Category 3 hurricane in the Siesta Key area of Florida, causing damage and flooding throughout Central Florida. (Photo by Joe Raedle/Getty Images)
Joe Raedle | Getty Images News | Getty Images

It’s officially hurricane season, and early forecasts indicate it’s poised to be an active one.
Now is the time to take a look at your homeowners insurance policy to ensure you have enough and the right kinds of coverage, experts say — and make any necessary changes if you don’t.

The National Oceanic and Atmospheric Administration predicts a 60% chance of “above-normal” Atlantic hurricane activity during this year’s season, which spans from June 1 to November 30.
The agency forecasts 13 to 19 named storms with winds of 39 mph or higher. Six to 10 of those could become hurricanes, including three to five major hurricanes of Category 3, 4, or 5.

You should pay close attention to your insurance policies.

Charles Nyce
risk management and insurance professor at Florida State University

Hurricanes can cost billions of dollars worth of damages. Experts at AccuWeather estimate that last year’s hurricane season cost $500 billion in total property damage and economic loss, making the season “one of the most devastating and expensive ever recorded.”
“Take proactive steps now to make a plan and gather supplies to ensure you’re ready before a storm threatens,” Ken Graham, NOAA’s national weather service director, said in the agency’s report.
Part of your checklist should include reviewing your insurance policies and what coverage you have, according to Charles Nyce, a risk management and insurance professor at Florida State University. 

“Besides being ready physically by having your radio, your batteries, your water … you should pay close attention to your insurance policies,” said Nyce.
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You want to know four key things: the value of property at risk, how much a loss could cost you, whether you’re protected in the event of flooding and if you have enough money set aside in case of emergencies, he said.
Bob Passmore, the department vice president of personal lines at the American Property Casualty Insurance Association, agreed: “It’s really important to review your policy at least annually, and this is a good time to do it.”
Insurers often suspend policy changes and pause issuing new policies when there’s a storm bearing down. So acting now helps ensure you have the right coverage before there’s an urgent need.
Here are three things to consider about your home insurance policy going into hurricane season, according to experts.

1. Review your policy limits

First, take a look at your policy’s limits, which represents the highest amount your insurance company will pay for a covered loss or damage, experts say. You want to make sure the policy limit is correct and would cover the cost of rebuilding your home, Passmore said.
Most insurance companies will calculate the policy limit by taking into account the size of your home and construction costs in your area, said Nyce. For example, if you have a 2,000 square foot home, and the cost of construction in your area is $250 per square foot, your policy limit would need to be $500,000, he said.
You may risk being underinsured, however, especially if you haven’t reviewed your coverage in a while. Rising building costs or home renovations that aren’t reflected in your insurer’s calculation can mean your coverage lags the home’s replacement value.
Repair and construction costs have increased in recent years, experts say. In the last five years, the cost of construction labor has increased 36.3% while the building material costs are up 42.7%, the APCIA found.
Most insurance companies follow what’s called the 80% rule, meaning your coverage needs to be at least 80% of its replacement cost. If you’re under, you risk your insurer paying less than the full claim.

2. Check your deductibles

Take a look at your deductibles, or the amount you have to pay out of pocket upfront if you file a claim, experts say.
For instance, if you have a $1,000 deductible on your policy and submit a claim for $8,000 of storm coverage, your insurer will pay $7,000 toward the cost of repairs, according to a report by NerdWallet. You’re responsible for the remaining $1,000.
A common way to lower your policy premium is by increasing your deductibles, Passmore said. 
Raising your deductible from $1,000 to $2,500 can save you an average 12% on your premium, per NerdWallet’s research.
But if you do that, make sure you have the cash on hand to absorb the cost after a loss, Passmore said.

Don’t stop at your standard policy deductible. Look over hazard-specific provisions such as a wind deductible, which is likely to kick in for hurricane damage.
Wind deductibles are an out-of-pocket cost that is usually a percentage of the value of your policy, said Nyce. As a result, they can be more expensive than your standard deductible, he said. 
If a homeowner opted for a 2% deductible on a $500,000 house, their out-of-pocket costs for wind damages can go up to $10,000, he said.
“I would be very cautious about picking larger deductibles for wind,” he said.

3. Assess if you need flood insurance

Floods are usually not covered by a homeowners insurance policy. If you haven’t yet, consider buying a separate flood insurance policy through the National Flood Insurance Program by the Federal Emergency Management Agency or through the private market, experts say. 
It can be worth it whether you live in a flood-prone area or not: Flooding causes 90% of disaster damage every year in the U.S., according to FEMA.
In 2024, Hurricane Helene caused massive flooding in mountainous areas like Asheville in Buncombe County, North Carolina. Less than 1% of households there were covered by the NFIP, according to a recent report by the Swiss Re Institute. 

If you decide to get flood insurance with the NFIP, don’t buy it at the last minute, Nyce said. There’s usually a 30-day waiting period before the new policy goes into effect. 
“You can’t just buy it when you think you’re going to need it like 24, 48 or 72 hours before the storm makes landfall,” Nyce said. “Buy it now before the storms start to form.” 
Make sure you understand what’s protected under the policy. The NFIP typically covers up to $250,000 in damages to a residential property and up to $100,000 on the contents, said Loretta Worters, a spokeswoman for the Insurance Information Institute.
If you expect more severe damage to your house, ask an insurance agent about excess flood insurance, Nyce said.
Such flood insurance policies are written by private insurers that cover losses over and above what’s covered by the NFIP, he said. More