US Would Retaliate Against ‘Unfair’ Foreign Taxes in Bill (1)

May 12, 2025, 8:09 PM UTCUpdated: May 12, 2025, 9:47 PM UTC

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 ...

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