Defending American Jobs and Investment Act

Defending American Jobs and Investment Act

This 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

• authorizing the President to prohibit government contracting 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, and
• requiring 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.

Bill 118 hr 3665, also known as the Defending American Jobs and Investment Act, was introduced in the US Congress with the aim of protecting American jobs and investments from unfair foreign competition. The bill seeks to address concerns about foreign governments engaging in unfair trade practices, such as currency manipulation and intellectual property theft, that harm American businesses and workers.

The key provisions of the bill include measures to strengthen enforcement of existing trade laws, increase transparency in trade agreements, and enhance the ability of the US government to respond to unfair trade practices. Additionally, the bill includes provisions to promote job creation and economic growth in the United States by supporting American businesses and workers.

Supporters of the bill argue that it is necessary to level the playing field for American businesses and workers in the global marketplace, and to ensure that foreign governments are held accountable for unfair trade practices. Critics, however, have raised concerns about the potential impact of the bill on international trade relations and the possibility of retaliation from foreign governments. Overall, the Defending American Jobs and Investment Act is a comprehensive piece of legislation aimed at protecting American jobs and investments from unfair foreign competition. Its provisions seek to promote economic growth and job creation in the United States, while also addressing concerns about unfair trade practices that harm American businesses and workers.