This bill is designed to push back against foreign countries that use unfair tax policies targeting American businesses and investors. Here's what it does: The Treasury Department will create a list of countries with these problematic taxes and report it to Congress. Then the U.S. government will pressure these countries to get rid of the unfair taxes through direct negotiations, explaining how these policies hurt American trade and economic interests.

If countries don't cooperate, the bill gives the U.S. government several ways to fight back. The government can increase income taxes and withholding taxes on citizens, corporations, and partnerships from those countries. It can also ban those countries from getting U.S. government contracts, refuse to sign new tax treaties with them, and block them from trade agreements. Essentially, the bill creates financial and trade consequences for countries that the U.S. believes are using discriminatory tax practices against American companies and investors.

The practical effect is that American businesses dealing with countries on this list could face higher tax bills, while those countries lose access to U.S. government business and trade benefits. The goal is to encourage foreign governments to change their tax policies to be fairer to American interests.

Defending American Jobs and Investment Act

Smith, Jason

Defending American Jobs and Investment ActThis bill provides for the enforcement of remedies against foreign countries that have extraterritorial or discriminatory taxes.Specifically, the bill requires the Department of the Treasury to periodically submit a report to Congress that lists each foreign country that has one or more extraterritorial or discriminatory taxes.Treasury must commence enhanced bilateral engagement with each foreign country included in the report. This engagement must (1) express the concern of the United States with respect to the adverse trade and economic effects of tax policies that violate bilateral tax treaties and international tax norms, (2) urge the repeal of extraterritorial and discriminatory taxes that target U.S. persons, and (3) advise the foreign country of remedial actions (as outlined by this bill).The bill increases income tax and withholding tax rates on certain foreign citizens, corporations, and partnerships of any foreign country listed in Treasury's report.The bill provides the executive branch with additional tools to enforce against extraterritorial and discriminatory taxes. These tools include<ul><li>authorizing the President to prohibit government contracting for&nbsp;or procurement&nbsp;of goods or services from a foreign country listed in Treasury's report,</li><li>directing Treasury to consider these taxes in assessing whether to enter into or update a bilateral tax treaty with the foreign country, and</li><li>requiring the Office of the U.S. Trade Representative and the Department of Commerce to consider these taxes in assessing whether to enter into any free trade agreement or executive agreement with the foreign country.</li></ul>