H.R. 591 — Defending American Jobs and Investment Act

This section adds new IRC §899 to address foreign extraterritorial taxes (i.e., taxes on U.S. persons' income sourced outside the foreign country) and discriminatory taxes (i.e., taxes targeting U.S. persons). (1) Requires the Secretary of the Treasury to report to congressional committees within 90 days of enactment and every 180 days thereafter on foreign countries imposing such taxes—including tax descriptions, rates, enactment and effective dates, and any repeals—noting that a country "has" such a tax from the earlier of enactment or effective date through the later of repeal enactment or effective date. (2) Directs the Secretary to engage bilaterally with listed countries to express U.S. concerns over treaty violations and international norms, urge repeal of taxes targeting U.S. persons, and advise of U.S. remedies. (3) Imposes remedial actions after the applicable date by increasing specified U.S. income tax rates (under IRC §§871(a), 871(b)/1, 881(a), 882(a)/11(b), and 884(a)) and withholding rates (under §§1441(a), 1442(a), 1445(a), and 1445(e)) on applicable persons (i.e., citizens and corporations of listed countries) by the applicable number of percentage points, disregarding U.S. treaty obligations (notwithstanding §§894 and 7852(d)); provides special rules limiting increases on nonresident aliens' effectively connected income to non-FIRPTA items and applying increases to specified dispositions and distributions of U.S. real property interests.