Defending American Jobs and Investment Act

House Bill

H.R. 591

119th Congress

Defending American Jobs and Investment Act

In Committee

Introduced:Jan 21, 2025

Primary Sponsor

Guy Reschenthaler

Representative

Republican

PA-14

Cosponsors

25

Quick Stats

Policy Area

Foreign Trade and International Finance

Summary

This bill creates enforcement mechanisms against countries with extraterritorial or discriminatory taxes targeting American businesses. Treasury must report on offending countries and engage diplomatically for tax repeal. The bill authorizes increased taxes on foreign citizens and corporations from listed countries, government contracting bans, and consideration in trade and tax treaty negotiations.

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.

AI Summary

Plain-English explanation of this bill

This bill creates enforcement mechanisms against countries with extraterritorial or discriminatory taxes targeting American businesses. Treasury must report on offending countries and engage diplomatically for tax repeal. The bill authorizes increased taxes on foreign citizens and corporations from listed countries, government contracting bans, and consideration in trade and tax treaty negotiations.

Last updated: 1/4/2026

Official Summary

Congressional Research Service 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 include<ul><li>authorizing the President to prohibit government contracting for or procurement 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>

Key Points

Main provisions of the bill

Treasury must identify countries with discriminatory taxes
Mandates diplomatic engagement for tax repeal
Authorizes retaliatory tax increases on foreign persons
Permits government contracting bans as remedy
Affects tax treaty and trade agreement negotiations

How This Impacts Americans

Potential effects on citizens and communities

This legislation responds to foreign digital services taxes and other measures seen as targeting American technology and other companies. It provides the administration with a toolkit of retaliatory options. The bill could affect relations with European allies and others who have imposed such taxes. It represents an escalation in international tax disputes beyond traditional treaty mechanisms.

Policy Areas

Primary Policy Area

Foreign Trade and International Finance

Related Subjects

Capital gains tax

Congressional oversight

Congressional-executive branch relations

Employment taxes

Foreign and international corporations

Income tax rates

International law and treaties

Public contracts and procurement

Taxation of foreign income

Trade agreements and negotiations

+1 more

Scope & Jurisdiction

Jurisdiction Level

federal

Congressional Session

119th Congress

Citation Reference

591, 119th Congress (2025). "Defending American Jobs and Investment Act". Source: Voter's Right Platform. https://votersright.org/bills/118-hr-591