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Miranda Stewart, Professor of Law, The University of Melbourne

What is the 90-year-old tax rule Trump could use to double US taxes on foreigners?

United States Donald Trump France Franklin D Roosevelt OECD Australia

US President Franklin D. Roosevelt. National Archives and Records Administration/Wikimedia Commons

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.

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