The Knight Watch – A Look at President Trump's America First Trade Policy Executive Order and International Tax; Proposals of Retaliatory Taxes to Counter "Discriminatory" Tax Practices
Tax attorneys Joshua Odintz, Nicole Elliott, Alan Granwell and Bryan Marcelino co-authored an article for TAXES – The Tax Magazine analyzing the Trump Administration's use of tax policy and focus on discriminatory taxation to shape international trade and shift U.S. trade relationships. The article begins by summarizing President Donald Trump's executive actions concerning trade, including the announcement of his America First Trade Policy and Executive Memorandum declaring the Organization for Economic Cooperation and Development's (OECD) Global Tax Deal has no effect in the United States. The authors then discuss the concept of tax discrimination – the perception that foreign countries are enacting tax legislation that discriminates against U.S. taxpayers and U.S. businesses – and potential ways the government could respond. They also cover in detail the Defending American Jobs and Investment Act, which was introduced by House Ways and Means Committee Chairman Jason Smith and would add a section to the Internal Revenue Code penalizing certain taxpayers in countries deemed to have discriminatory tax practices. Finally, they outline the Unfair Tax Prevention Act, a bill that would expand application of the base erosion and anti-abuse tax (BEAT).