U.S. Treasury Secretary Scott Bessent said on Thursday that he has asked the Senate and the House to remove a tax proposal known as Section 899 from the budget bill after an agreement with other countries.

Section 899 — would allow the federal government to impose taxes on companies with foreign owners as well as investors from countries judged as charging “unfair foreign taxes” on U.S. companies.

The agreement among the Group of Seven largest economies means the “revenge tax” being contemplated in Republicans’ tax-and-spending bill should be removed from the legislation, Bessent said. The provision would have imposed additional taxes as high as 20% against companies from countries that imposed what the U.