Executive Director @taxlawcenter.org Tax, law, policy, budget, economy. US & NZ. Former Senior Director for Economic Policy @centeronbudget.bsky.social.
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While foreign investors in US stocks and some corporate bonds may face higher taxes, it is unclear whether that tax would extend to Treasury debt, according to several analysts and investors. Interest earned on Treasuries is usually tax-exempt for investors based outside the US, and making that taxable would represent an enormous change from current policy.
“Section 899 is legally ambiguous regarding a potential tax on Treasuries,” said Lewis Alexander, chief economic strategist at hedge fund Rokos Capital Management. “Taxing Treasuries could be counter-productive as any potential revenues likely would be outweighed by a resulting increase in borrowing costs [as investors sell the debt].”](https://cdn.bsky.app/img/feed_thumbnail/plain/did:plc:4vlluii6vmkt5zlyw4aov623/bafkreig5pclhhagmcsdpgfvvrxwu4wvze2m3oxx2pi37wgqcfojuliu4bu)
Executive Director @taxlawcenter.org Tax, law, policy, budget, economy. US & NZ. Former Senior Director for Economic Policy @centeronbudget.bsky.social.