If Trump Invoked Section 891 of Title 26 of the Tax Code

[Bugs 455]

Article on Trump’s signed executive order that may trigger this can be found here:

 

https://theconversation.com/what-is-the-90-year-old-tax-rule-trump-could-use-to-double-us-taxes-on-foreigners-248154

Edited January 29 by Bugs

[Bugs 455]

To stay within ToS, the first few paragraphs of the article state:

 

“US President Donald Trump isn’t happy about the way some countries are taxing American citizens and companies. He has made clear he’s willing to retaliate, threatening to double taxes for their own citizens and companies.

 

“Can Trump really do that, unilaterally, as president? It turns out he can, under a 90-year-old provision of the US tax code – Section 891.

 

“In an executive memo signed on January 20 outlining his ‘America First Trade Policy’, Trump instructed US Treasury to: 

‘investigate whether any foreign country subjects United States citizens or corporations to discriminatory or extraterritorial taxes pursuant to Section 891 of Title 26, United States Code.’

“Section 891 of the US Internal Revenue Code is short, but it is in sweeping terms.

 

“If the president finds that US citizens or corporations are being subjected to ‘discriminatory or extraterritorial taxes’, under the laws of any foreign country, he ‘shall so proclaim’ this. US income tax rates on the citizens or corporations of that country are then automatically doubled.”

Edited January 29 by Bugs

[mam521 2,248]

Wonder if his panties are in a wad and this was put on the radar, in part, because of LaHood's bill.  https://www.imidaily.com/north-america/bill-to-end-overseas-american-taxation-expires-but-could-it-make-a-comeback-experts-doubtful/

 

Neither likely to pass I'd say because either would require an onerous rewrite of the tax code.