The US would be able to increase taxes on foreign companies and individuals whose countries are imposing discriminatory taxes on American businesses under a new tax bill unveiled by House Republicans on Monday.
The bill would create a new tax code Section 899, and is similar to legislation introduced by Ways and Means Committee Chair Jason Smith (R-Mo.) earlier this year.
Under proposed Section 899, the tax rate would increase on the US income of foreign individuals and foreign-owned companies by 5 percentage points if their parent countries are imposing discriminatory taxes on US businesses.
The retaliatory provision isn’t ...