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Ending Tax Exemptions for Massive Foreign Sovereign Wealth Funds

This legislation removes the US tax exemption on investment income earned by extremely large foreign sovereign wealth funds (over $100 billion) if those governments lack a free trade or income tax treaty with the US, or if they are designated as 'covered nations.' The goal is to increase US tax revenue by taxing foreign state-owned investments that were previously exempt. This change primarily affects international finance and US federal revenue.
Key points
Imposes US tax on investment income generated by foreign government funds holding over $100 billion in assets.
The tax applies specifically to governments without existing US tax treaties or those identified as strategic 'covered nations.'
The Treasury Department is required to publish and regularly update a list of these non-exempt foreign governments, with the changes generally effective starting in 2024.
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Expired
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Additional Information
Print number: 118_S_2518
Sponsor: Sen. Wyden, Ron [D-OR]
Process start date: 2023-07-26
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Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Ending Tax Breaks for Massive Sovereign Wealth Funds Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_2518.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2023-07-26.

What are the main provisions?

Key points include:

  • Imposes US tax on investment income generated by foreign government funds holding over $100 billion in assets.
  • The tax applies specifically to governments without existing US tax treaties or those identified as strategic 'covered nations.'
  • The Treasury Department is required to publish and regularly update a list of these non-exempt foreign governments, with the changes generally effective starting in 2024.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Wyden, Ron [D-OR].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-26.

CATEGORIES

Taxes Economy