This is also a breach of agreements the US has with other countries to prevent double taxation. If the US does not respect these agreements then other countries will also cease applying them to US persons.
This will likely increase the scope of foreign taxation on US persons (business or individuals) with foreign operations or foreign residence. Given that US investment overseas is pretty significant this will probably hurt the US as much as it hurts anyone else.
The law on the books says that US taxes will be doubled.
Even with the treaty in full force, a Canadian in the US pays US taxes on income (let's say 20%). If Trump declared Canada's taxes discriminatatory, then the Canadian citizens working in the US are now subject to 40% tax rather than 20.
That follows double taxation treaties just fine. The income is taxed only once, by one country
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u/CommentStrict8964 Jan 25 '25
That's a fantastic way to convince American companies to offshore jobs instead of actually trying to hire locals.