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House Ways and Means Committee Chairman Jason Smith (R-MO) and all Ways and Means Republicans on 25 May 2023 introduced the Defending American Jobs and Investment Act. The proposed legislation would increase income tax and withholding tax rates, initially by 5 percentage points, increasing up to 20 percentage points on certain foreign citizens, foreign corporations, and foreign partnerships of any foreign country that is listed in a report on the extraterritorial taxes and discriminatory taxes of foreign countries submitted by the Secretary of the Treasury to certain Congressional committees. 

The increases in income tax and withholding tax rates would take effect the day after the 180-day period beginning on the date the first Report is submitted which lists a foreign country. 

The legislation also includes other remedies against a listed foreign country with extraterritorial taxes and discriminatory taxes.

The bill appears to take aim at the OECD two-pillar solution and at countries that introduce digital service taxes (DSTs), with the extraterritorial tax focusing on the undertaxed profits rule (UTPR) and the discriminatory tax focusing on DSTs.