,i  #aaith ,,congress  #ast ,session    
,h4 ,r4 #eia  ,,in ,,the ,,house ,,of   
,,representatives  ,january #ba1        
#bjbe,mr4 ,smith of ,missouri 7for      
himself1 ,mr4 ,buchanan1 ,mr4 ,smith of 
,nebraska1 ,mr4 ,kelly of ,pennsylvania1
 ,mr4 ,schweikert1 ,mr4 ,la,hood1 ,mr4  
,arrington1 ,mr4 ,estes1 ,mr4 ,smucker1 
,mr4 ,hern of ,oklahoma1 ,mrs4 ,miller  
of ,west ,virginia1 ,mr4 ,murphy1 ,mr4  
,kustoff1 ,mr4 ,fitzpatrick1 ,mr4       
,steube1 ,ms4 ,tenney1 ,mrs4 ,fischbach1
 ,mr4 ,moore of ,utah1 ,ms4 ,van ,duyne1
 ,mr4 ,feenstra1 ,ms4 ,malliotakis1 ,mr4
 ,carey1 ,mr4 ,yakym1 ,mr4 ,miller of   
,ohio1 ,mr4 ,bean of ,florida1 and ,mr4 
,moran7 introduced the following bill2  
which was referred to the ,committee on 
,ways and ,means1 and in addition to the
 ,committee on ,oversight and           
,government ,reform1 for a period to be 
subsequently determined by the ,speaker1
 in each case for consideration of such 
provisions as fall within the           
jurisdiction of the committee concerned 

,a ,,bill  ,to provide an enforcement of
 remedies against the extraterritorial  
taxes and discriminatory taxes of       
foreign countries4  #a4 ,short title    
,this ,act may be cited as the          
,defending ,american ,jobs and          
,investment ,act4  #b4 ,enforcement of  
remedies against extraterritorial taxes 
and discriminatory taxes  7a7 ,in       
general ,subpart ,d of part ,,ii of     
subchapter ,n of chapter #a is amended  
by adding at the end the following new  
section3  #hii4 ,enforcement of remedies
 against extraterritorial taxes and     
discriminatory taxes  7a7 ,report on    
extraterritorial taxes and              
discriminatory taxes  7#a7 ,in general  
,not later than #ij days after the date 
of the enactment of this section1 and   
not less frequently than once every #ahj
 days thereafter1 the ,secretary shall  
submit to the appropriate committees of 
,congress a report which lists each     
foreign country that has 7as of the date
 of the submission of such report7 one  

or more extraterritorial taxes or       
discriminatory taxes4  7#b7 ,additional 
items ,each report submitted under      
paragraph 7#a7 shall include-- 7,a7 with
 respect to each extraterritorial tax or
 discriminatory tax of any foreign      
country listed in such report1 a        
description of such tax including the   
rate thereof and the dates on which such
 tax was enacted and takes effect1 and  
7,b7 if the ,secretary determines that  
any foreign country no longer has 7as of
 the date of the submission of such     
report7 an extraterritorial tax or      
discriminatory tax which was described  
in any prior report submitted under this
 subsection-- 7i7 the dates on which the
 permanent repeal or termination of such
 tax was enacted and takes effect1 and  
7ii7 whether such foreign country has   
7as of such date7 any other             
extraterritorial taxes or discriminatory
 taxes4  7#c7 ,determination of when a  
foreign country has an extraterritorial 
tax or discriminatory tax ,for purposes 

of this section1 a foreign country shall
 be treated as having an                
extraterritorial tax or discriminatory  
tax during the period-- 7,a7 beginning  
on the earlier of the date on which such
 tax is enacted or takes effect1 and    
7,b7 ending on the later of the date on 
which the permanent repeal or           
termination of such tax is enacted or   
takes effect4  7b7 ,engagement with     
trading partners on extraterritorial    
taxes and discriminatory taxes ,the     
,secretary shall commence enhanced      
bilateral engagement with each foreign  
country included in the report submitted
 under subsection 7a71 in order to1 as  
appropriate-- 7#a7 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      
norms1  7#b7 urge repeal of             
extraterritorial taxes and              
discriminatory taxes that target ,united
 ,states persons1 and  7#c7 advise such 

foreign country of the remedial actions 
under subsection 7c74  7c7 ,remedial    
actions  7#a7 ,increased rate of tax on 
foreign citizens and foreign            
corporations  7,a7 ,income taxes  7i7   
,in general ,in the case of any         
applicable person for any taxable year  
beginning after the applicable date1    
each specified rate of income tax shall 
be increased by the applicable number of
 percentage points4  7ii7 ,specified    
rate of income tax ,for purposes of this
 subparagraph1 the term specified rate  
of income tax means-- 7,i7 the rates of 
tax specified in paragraphs 7#a7 and    
7#b7 of section #hga7;a71  7,,ii7 in the
 case of any applicable person to which 
section #hga7;b7 applies1 each rate of  
tax in effect under section #a1  7,,iii7
 the rate of tax specified in section   
#hha7;a71  7,,iv7 in the case of any    
applicable person to which section      
#hhb7;a7 applies1 the rate of tax       
specified in section #aa7;b71 and  7,v7 
the rate of tax specified in section    

#hhd7;a74  7iii7 ,application of        
increased rates to effectively connected
 income of nonresident alien individuals
 limited to gains on ,united ,states    
real property interests ,in the case of 
any individual to whom clause 7i7       
applies1 the tax imposed under section  
#a on such individual 7after application
 of clause 7ii77,,ii77 shall be reduced 
7but not below zero7 by the excess of-- 
7,i7 the tax which would be imposed     
under such section 7after application of
 clause 7ii77,,ii77 if ,,firpta items   
were not taken into account1 over       
7,,ii7 the tax which would be imposed   
under such section if ,,firpta items    
were not taken into account1 and clause 
7ii77,,ii7 did not apply4  ,for purposes
 of this clause1 the term ,,firpta items
 means gains and losses taken into      
account under section #hga7;b77#a7 by   
reason of section #hig7;a77#a77;,a74    
7,b7 ,withholding taxes  7i7 ,in general
 ,in the case of any payment to an      
applicable person after the applicable  

date1 the rate of tax specified in      
sections #adda7;a7 and #addb7;a7 7other 
than the #ad percent rate of tax        
specified in section #adda7;a77 shall   
each be-- 7,i7 notwithstanding sections 
#hid and #gheb7;d71 determined without  
regard to any treaty obligation of the  
,united ,states1 and  7,,ii7 increased  
by the applicable number of percentage  
points4  7ii7 ,disposition of ,united   
,states real property interests ,in the 
case of any disposition of a ,united    
,states real property interest 7as      
defined in section #hig7;c77 by an      
applicable person after the applicable  
date1 the rate of tax specified in      
section #adde7;a7 shall be-- 7,i7       
notwithstanding sections #hid and       
#gheb7;d71 determined without regard to 
any treaty obligation of the ,united    
,states1 and  7,,ii7 increased by the   
applicable number of percentage points4 
7iii7 ,other dispositions and           
distributions related to ,united ,states
 real property interests ,in the case of

 any disposition or distribution        
described in any paragraph of section   
#adde7;e7 made after the applicable     
date1 each rate of tax in such paragraph
 shall be 7notwithstanding sections #hid
 and #gheb7;d77 determined without      
regard to any treaty obligation of the  
,united ,states and increased by the    
applicable number of percentage points  
if-- 7,i7 in the case of section        
#adde7;e77#a71 the foreign person       
referred to in subparagraph 7,a7 or 7,b7
 of such section is an applicable       
person1  7,,ii7 in the case of section  
#adde7;e77#b71 the foreign corporation  
referred to in such section is an       
applicable person1  7,,iii7 in the case 
of section #adde7;e77#c71 the foreign   
shareholder referred to in such section 
is an applicable person1  7,,iv7 in the 
case of section #adde7;e77#d71 the      
foreign person referred to in such      
section is an applicable person1  7,v7  
in the case of section #adde7;e77#e71   
the ,secretary issues regulations or    

other guidance providing for such       
increase1 and  7,,vi7 in the case of    
section #adde7;e77#f71 the nonresident  
alien individual or foreign corporation 
referred to in such section is an       
applicable person4  7,c7 ,applicable    
person ,for purposes of this paragraph1 
the term applicable person means-- 7i7  
any individual 7other than a citizen or 
resident of the ,united ,states7 who is 
a citizen of a foreign country listed in
 a report under subsection 7a71  7ii7   
any foreign corporation 7other than a   
specified #aj-percent owned foreign     
corporation1 as defined in section      
#bde;,a7b77 which is created or         
organized in such a foreign country or  
subject to the income tax laws of such  
foreign country1 and  7iii7 in the case 
of the application of subparagraph      
7,b77i7 with respect to section         
#adda7;a71 foreign partnerships to the  
extent provided by the ,secretary 7and  
taking into account the rules of section
 #adda7;d774  7,d7 ,applicable date ,for

 purposes of this paragraph1 the term   
applicable date means with respect to   
any foreign country1 the day after the  
#ahj-;day period beginning on the date  
of the submission of the first report   
under subsection 7a7 which lists such   
foreign country4  7,e7 ,applicable      
number of percentage points ,for        
purposes of this paragraph-- 7i7 ,in    
general ,the term applicable number of  
percentage points means1 with respect to
 any foreign country-- 7,i7 with respect
 to the #a-year period beginning on the 
applicable date with respect to such    
foreign country1 #e percentage points1  
7,,ii7 with respect to the #a-year      
period beginning with the close of the  
period described in subclause 7,i71 #aj 
percentage points1  7,,iii7 with respect
 to the #a-year period beginning with   
the close of the period described in    
subclause 7,,ii71 #ae percentage points1
 and  7,,iv7 with respect to any time   
after the close of the period described 
in subclause 7,,iii71 #bj percentage    

points4  7ii7 ,application to taxable   
years ,for purposes of subparagraph     
7,a71 the applicable number of          
percentage points shall be determined   
with respect to the date on which the   
taxable year begins4  7iii7 ,application
 to withholding taxes ,for purposes of  
subparagraph 7,b71 the applicable number
 of percentage points shall be          
determined with respect to the date of  
the payment or disposition1 as the case 
may be4  7,f7 ,effect of permanent      
repeal or termination of                
extraterritorial and discriminatory     
taxes ,if the ,secretary determines     
under subsection 7a77#b77;,b77ii7 that  
any foreign country no longer has any   
extraterritorial or discriminatory      
taxes1 then in the case of any taxable  
year beginning1 or payment or           
disposition made1 after the date of the 
submission of the report which includes 
such determination1 this section shall  
be applied with respect to such foreign 
country by not taking into account any  

report submitted before such date4  7#b7
 ,other remedies  7,a7 ,procurement  7i7
 ,in general ,the ,president may        
prohibit the ,federal ,government from  
procuring1 or entering into any contract
 for the procurement of1 goods or       
services from applicable persons during 
the period beginning on the applicable  
date and ending on the date of any      
determination described in paragraph    
7#a77;,f7 by the ,secretary with respect
 to such foreign country4  7ii7         
,congressional notification ,if the     
,president takes any action described in
 clause 7i71 the ,president shall1 not  
later than #cj days after the date of   
such action1 notify the appropriate     
committees of ,congress of such action4 
7,b7 ,tax treaties  7i7 ,in general ,the
 ,secretary shall take into account the 
extraterritorial taxes and              
discriminatory taxes of any foreign     
country in assessing whether to enter   
into a bilateral tax treaty with such   
foreign country or to participate in    

negotiations with respect to updating a 
bilateral tax treaty with such foreign  
country4  7ii7 ,congressional           
notification ,if the ,secretary begins  
negotiations with respect to entering   
into or updating any bilateral tax      
treaty with any foreign country that    
imposes one or more extraterritorial or 
discriminatory taxes1 the ,secretary    
shall1 not later than #cj days after    
beginning such negotiations1 notify the 
appropriate committees of ,congress of  
such action4 ,such notification shall   
include a description of the manner in  
which such taxes are being taken into   
account as required under clause 7i74   
7,c7 ,trade agreements  7i7 ,in general 
,the ,united ,states ,trade             
,representative and the ,secretary of   
,commerce shall each take into account  
the extraterritorial taxes and          
discriminatory taxes of any foreign     
government in assessing whether to enter
 into any free trade agreement or       
,executive agreement on trade with such 

foreign country4  7ii7 ,congressional   
notification ,if the ,united ,states    
,trade ,representative or the ,secretary
 of ,commerce begins negotiations with  
respect to entering into any free trade 
agreement or ,executive agreement on    
trade with any foreign country that     
imposes one or more extraterritorial or 
discriminatory taxes1 the ,united       
,states ,trade ,representative or the   
,secretary of ,commerce 7as the case may
 be7 shall1 not later than #cj days     
after beginning such negotiations1      
notify the appropriate committees of    
,congress of such action4 ,such         
notification shall include a description
 of the manner in which such taxes are  
being taken into account as required    
under clause 7i74  7d7 ,definitions ,for
 purposes of this section-- 7#a7        
,extraterritorial tax  7,a7 ,in general 
,the term extraterritorial tax means any
 tax imposed by a foreign country on a  
corporation 7including any trade or     
business of such corporation7 which is  

determined by reference to any income or
 profits received by any person         
7including any trade or business of any 
person7 by reason of such person being  
connected to such corporation through   
any chain of ownership1 determined      
without regard to the ownership         
interests of any individual1 and other  
than by reason of such corporation      
having a direct or indirect ownership   
interest in such person4  7,b7 ,tax ,the
 term tax includes any increase in tax  
whether effectuated by an increase in   
the rate or base of a tax1 by a denial  
of deductions or credits1 or otherwise4 
7#b7 ,discriminatory tax  7,a7 ,in      
general ,except as otherwise provided in
 subparagraph 7,b71 the term            
discriminatory tax means any tax imposed
 by a foreign country if-- 7i7 such tax 
applies to items of income that would   
not be considered to be from sources    
within the foreign country under the    
rules of part ,i of this subchapter if  
such part were applied by treating such 

foreign country as though it were the   
,united ,states1  7ii7 such tax is      
imposed on a base other than net income 
and is not computed by permitting       
recovery of costs and expenses1  7iii7  
such tax is exclusively or predominantly
 applicable1 in practice or by its      
terms1 to nonresident individuals and   
foreign corporations or partnerships 7as
 determined under rules similar to      
paragraphs 7#d7 and 7#e7 of section     
#ggja7;a7 by treating the foreign       
country as though it were the ,united   
,states7 because of the application of  
revenue thresholds1 exemptions or       
exclusions for taxpayers subject to such
 foreign country's corporate income tax1
 or restrictions of scope that ensure   
that substantially all residents 7other 
than foreign corporations and           
partnerships 7as so determined77        
supplying comparable goods or services  
are excluded from the application of    
such tax1 or  7iv7 such tax is not      
treated as an income tax under the laws 

of such foreign country or is otherwise 
treated by such foreign country as      
outside the scope of any agreements that
 are in force between such foreign      
country and one or more other           
jurisdictions for the avoidance of      
double taxation with respect to taxes on
 income4  7,b7 ,exceptions ,except as   
otherwise provided by the ,secretary1   
the term discriminatory taxes shall not 
include any generally applicable tax    
which constitutes-- 7i7 a withholding   
tax on amounts described in sections    
#hga7;a77#a7 and #hha7;a71  7ii7 a value
 added tax1 goods and services tax1     
sales tax1 or other similar tax on      
consumption1  7iii7 a tax imposed with  
respect to transactions on a per-unit or
 per-transaction basis rather than on an
 ad valorem basis1  7iv7 a tax on real  
or personal property1 or  7v7 any other 
similar tax identified by the ,secretary
 for purposes of this subparagraph4     
7#c7 ,foreign country ,the term foreign 
country means a foreign country or a    

dependent territory or possession of a  
foreign country4 ,such term does not    
include any possession of the ,united   
,states4  7#d7 ,appropriate committees  
of ,congress ,the term appropriate      
committees of ,congress means-- 7,a7 the
 ,committee on ,finance and the         
,committee on ,foreign ,relations of the
 ,senate1 and  7,b7 the ,committee on   
,foreign ,affairs and the ,committee on 
,ways and ,means of the ,house of       
,representatives4  7#e7 ,secretary ,the 
term ,secretary means the ,secretary of 
the ,treasury or the ,secretary's       
delegate4  7e7 ,regulations and other   
guidance ,the ,secretary may issue such 
regulations or other guidance as may be 
necessary or appropriate to carry out   
the purposes of this section1 including 
regulations or other guidance which     
provide for such adjustments to the     
application of this section as are      
necessary to prevent the avoidance of   
the purposes of this section4  4  7b7   
,clerical amendment ,the table of       

sections for subpart ,d of part ,,ii of 
subchapter ,n of chapter #a is amended  
by adding at the end the following new  
item3  ,sec4 #hii4 ,enforcement of      
remedies against extraterritorial taxes 
and discriminatory taxes4  4