Bill > HR591

This bill establishes a comprehensive framework for addressing extraterritorial and discriminatory taxes imposed by foreign countries. The legislation requires the Secretary of the Treasury to submit reports every 180 days identifying foreign countries with such taxes, detailing their rates, enactment dates, and specific characteristics. If a foreign country is found to have these problematic taxes, the United States will initiate enhanced bilateral engagement to express concerns and urge tax policy changes. The bill provides escalating remedial actions, including increasing tax rates for citizens and corporations from countries with extraterritorial or discriminatory taxes, starting at 5 percentage points and potentially rising to 20 percentage points over time. Additionally, the government may take further actions such as prohibiting federal procurement from affected entities, considering tax policies during treaty negotiations, and factoring these tax practices into trade agreement discussions. The bill defines extraterritorial taxes as those imposed on corporations based on income connections beyond direct ownership, and discriminatory taxes as those applied unfairly to non-resident individuals and foreign corporations. The legislation aims to protect U.S. economic interests by creating a structured approach to challenging international tax practices that potentially disadvantage American businesses and individuals.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/591/all-info