,,ii  #aahth ,,congress  #b;d ,session  
,s4 #ebcc  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,september #be1
 #bjbd,mr4 ,ricketts introduced the     
following bill2 which was read twice and
 referred to the ,committee on ,finance 
,a ,,bill  ,to amend the ,internal      
,revenue ,code of #aihf to treat certain
 gains and dividends derived from       
counties of concern as ordinary income4 
#a4 ,short title ,this ,act may be cited
 as the ,no ,capital ,gains ,allowance  
for ,american ,adversaries ,act4  #b4   
,certain gains and dividends derived    
from countries of concern treated as    
ordinary income  7a7 ,in general ,part  
,,iv of subchapter ,p of chapter #a of  
the ,internal ,revenue ,code of #aihf is
 amended by adding at the end the       
following new section3  #abfa4 ,gains   
derived from countries of concern       
treated as ordinary income  7a7 ,in     
general ,gain from the sale1 exchange1  
or other disposition of specified       
country of concern property shall be    

treated as ordinary income4 ,such gain  
shall be recognized notwithstanding any 
other provision of this title4  7b7     
,specified country of concern property  
,for purposes of this section3 7#a7 ,in 
general ,the term specified country of  
concern property means-- 7,a7 any       
registered or unregistered security of a
 company or other entity1 as determined 
by criteria established by the          
,securities and ,exchange ,commission   
and the ,secretary of the ,treasury--   
7i7 which is incorporated or otherwise  
organized in a country of concern1  7ii7
 which has a majority of such company or
 other entity's assets or employees     
located in a country of concern1  7iii7 
which is owned by1 controlled by1 or    
subject to the jurisdiction or direction
 of a government of a country of        
concern1  7iv7 where a majority of such 
company or other entity's value depends 
on the revenues1 profits1 market        
capitalization1 assets1 or the value of 
a security 7including options to        

purchase or sell7 of companies or other 
entities described under clause 7i71    
7ii71 or 7iii71 or  7v7 where such      
company or other entity is controlled by
 any company or other entity described  
under clause 7i71 7ii71 or 7iii71 and   
7,b7 any property 7other than           
securities7 which is located or used in 
a country of concern4  7#b7 ,additional 
definitions ,for purposes of paragraph  
7#a73 7,a7 ,controlled by ,the term     
controlled by has the meaning given that
 term under section #bcj4dje of title   
#ag1 ,code of ,federal ,regulations4    
7,b7 ,country of concern ,the term      
country of concern means the ,people's  
,republic of ,china 7including ,hong    
,kong and ,macao and excluding ,taiwan71
 ,russia1 ,belarus1 ,iran1 and ,north   
,korea4  4  7b7 ,dividends ,section     
#a7;h77#aa77;,c77iii7 of such ,code is  
amended by striking and at the end of   
subclause 7,i71 by striking the period  
at the end of subclause 7,,ii7 and      
inserting 1 and1 and by adding at the   

end the following new subclause3        
7,,iii7 any foreign corporation         
described in section #abfa7;b77#a77;,a7 
as of the date on which the dividend is 
paid4  4  7c7 ,denial of step-,up in    
basis at death ,section #ajad7;a7 of    
such ,code is amended by striking or at 
the end of paragraph 7#c71 by striking  
the period at the end of paragraph 7#d7 
and inserting 1 or1 and by adding at the
 end the following new paragraph3  7#e7 
in the case of specified country of     
concern property 7as defined in section 
#abfa7;b771 the basis in the hands of   
the decedent4  4  7d7 ,notice to        
purchasers ,not later than #ahj days    
after the date of the enactment of this 
,act1 the ,securities and ,exchange     
,commission shall issue rules requiring 
any person selling1 exchanging1 or      
otherwise disposing of a security that  
is specified country of concern property
 7as defined under section #abfa7;b7 of 
the ,internal ,revenue ,code of #aihf7  
to notify the other party to such sale1 

exchange1 or disposition that any gains 
related to such security are treated as 
ordinary income under the ,internal     
,revenue ,code of #aihf and not treated 
as capital gains4  7e7 ,publicly        
available list of securities  7#a7 ,in  
general ,the ,securities and ,exchange  
,commission shall publish on the website
 of the ,commission a list of all       
securities described under section      
#abfa7;b77#a77;,a7 of the ,internal     
,revenue ,code of #aihf4  7#b7          
,reporting requirements ,the ,securities
 and ,exchange ,commission may require  
such reports as the ,commission         
determines necessary to determine which 
securities are described under section  
#abfa7;b77#a77;,a7 of the ,internal     
,revenue ,code of #aihf4  7f7           
,rulemaking ,not later than #ahj days   
after the date of the enactment of this 
,act1 the ,secretary of the ,treasury   
and the ,securities and ,exchange       
,commission shall issue such rules as   
may be necessary to implement this ,act 

and the amendments made by this ,act1   
including establishing the criteria     
described under section                 
#abfa7;b77#a77;,a7 of the ,internal     
,revenue ,code of #aihf4  7g7 ,effective
 date ,the amendments made by this      
section shall apply to dispositions of  
property1 and dividends paid1 on or     
after ,january #a1 #bjbe4