Core Viewpoint - The U.S. Treasury Secretary, Becerra, has requested the removal of the controversial "capital tax" clause (Section 899) from the "Big Beautiful" tax bill, alleviating Wall Street's concerns [1][3][10]. Group 1: Tax Clause Developments - The U.S. Treasury has reached an agreement with G7 allies to exempt U.S. companies from certain taxes imposed by other countries after agreeing to remove the "retaliatory tax" proposal from Trump's tax plan [1][2]. - Becerra previously defended the "capital tax" clause, stating its purpose was to prevent foreign countries from imposing additional taxes that could harm U.S. multinational companies [4][6]. - The "retaliatory tax" clause was drafted by House Republicans and supported by the White House to counter what they deemed discriminatory tax policies from several countries, including European nations, Canada, and Australia [5][6]. Group 2: Implications of the Tax Clause - The clause primarily targeted countries imposing digital services taxes on U.S. tech companies and those implementing a global minimum corporate tax [6][7]. - The OECD is leading a global corporate tax reform negotiation, which includes a proposal for a 15% global minimum corporate tax that has faced opposition from the U.S. [6][7]. - The controversial "capital tax" clause proposed a punitive tax on passive income for investors from targeted countries, increasing by 5 percentage points annually, up to a maximum of 20% [8][9]. Group 3: Market Reactions - Following the news of Becerra's request to remove the capital tax, market reactions were muted, with the Bloomberg Dollar Index declining for the fourth consecutive day and U.S. Treasury prices rising [12][13]. - Analysts noted that removing Section 899 from budget negotiations could provide more certainty for non-U.S. investors frequently investing in the U.S. [13].