Defending American Jobs and Investment Act
Defending American Jobs and Investment Act
Plain Language Summary
# Summary of HR 591: Defending American Jobs and Investment Act **What the Bill Does:** This bill aims to protect American workers and businesses from what it considers unfair tax practices by foreign countries. It would require the U.S. Treasury Department to identify foreign nations that use "extraterritorial or discriminatory taxes"—taxes that disproportionately target American citizens, companies, or investments. The bill then authorizes the U.S. government to negotiate with these countries to eliminate such taxes, and if negotiations fail, it allows the U.S. to impose higher tax rates on income and investments from those countries. **Who It Affects:** The bill primarily impacts U.S.
businesses and investors operating internationally, as well as foreign companies doing business in the U.S. It could also affect American workers employed by international companies. Foreign countries identified as having unfair tax practices would face pressure to change their policies or face retaliatory U.S. tax increases on their citizens and businesses. **Current Status:** HR 591 is currently in committee, meaning it has been introduced but has not yet been debated or voted on by the full House of Representatives. It was sponsored by Representative Jason Smith (R-MO) in the 119th Congress.
CRS Official Summary
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 includeauthorizing the President to prohibit government contracting for or procurement of goods or services from a foreign country listed in Treasury's report,directing Treasury to consider these taxes in assessing whether to enter into or update a bilateral tax treaty with the foreign country, andrequiring 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.
Latest Action
Referred to the Committee on Ways and Means, and in addition to the Committee on Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.