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(Bloomberg) -- Senate Republicans will examine the potential impact of a so-called “revenge” tax buried in President Donald Trump’s massive fiscal package before passing the measure, Majority Leader John Thune said Monday.

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“There are several things that are in the bill that our folks are working with the House,” Thune told reporters when asked about the provision. “Particularly on the business side, we want to make sure the policies are pro-growth.”

The item, in legislation that passed the House as Section 899, would increase rates for individuals and companies from countries whose tax policies the US deems “discriminatory.”

Wall Street analysts are warning the provision would create another disincentive for foreign investors at a time when their confidence in US assets has already been shaken by Trump’s erratic trade policies and the nation’s deteriorating fiscal accounts. Congress’s own official tax scorekeeper is forecasting the provision would reduce foreign investment in the US.

Thune sidestepped a question on whether he favored the provision. The Senate is planning to release a new draft of the bill in the coming weeks.

House Ways and Means Committee spokesman JP Freire said the retaliatory tax wouldn’t cover portfolio interest such as on Treasuries.

Michael Zezas, Morgan Stanley’s global head of fixed income research and public policy strategy, said in an interview that the provision is worrying investors.

“One reason why this has kind of captured the imagination of investors is that it’s a tax issue that if it were to pass into law would grant more executive authority,” Zezas said. “And we’ve recently experienced how the exercise of executive power can be really meaningful and impactful for markets.”

Thune said the Senate’s goal is to write a bill that can pass the House without further changes. Senators are looking to deepen spending cuts and make permanent some temporary business tax breaks.

--With assistance from Liz Capo McCormick and Ye Xie.

(Updates with additional comments, context beginning with fourth paragraph)

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