Defending American Jobs and Investment Act

Protection against unfair tax policies: The bill aims to address the adverse trade and economic effects of tax policies that violate bilateral tax treaties and international tax norms (Section 2(b)(1)).

Pressure for tax repeal: The Secretary is tasked with using enhanced bilateral engagement to urge the repeal of taxes that target United States persons (Section 2(b)(2)).

Accountability through reporting: The Secretary must submit reports to Congress every 180 days listing foreign countries with extraterritorial or discriminatory taxes, including specific descriptions and rates (Section 2(a)(1) and (2)).

Higher taxes for foreign citizens and corporations: The bill increases the rate of income tax and withholding taxes for "applicable persons," which includes any individual who is a citizen of a foreign country listed in the report and any foreign corporation created or organized in such a country (Section 2(c)(1)(A) and (C)).

Escalating tax rates: The increased tax rates grow over time, starting at 5 percentage points and potentially increasing to 20 percentage points (Section 2(c)(1)(E)(i)).

Disruption of government procurement: The President has the authority to prohibit the Federal Government from procuring goods or services from applicable persons (Section 2(c)(2)(A)(i)).

Impact on trade and treaty negotiations: The Secretary of the Treasury and the United States Trade Representative must consider these foreign taxes when assessing bilateral tax treaties and free trade agreements (Section 2(c)(2)(B) and (C)).