Press Release
Rep. Bera Leads Bipartisan Letter Urging House and Senate Leadership to Pass Taiwan Double Taxation Relief
Washington, D.C.,
December 6, 2024
Today, U.S. Representative Ami Bera, M.D. (D-CA-06), Ranking Member of the House Foreign Affairs Subcommittee on the Indo-Pacific and Co-Chair of the Congressional Taiwan Caucus, and Rep. Andy Barr (R-KY-06), Co-Chair of the Congressional Taiwan Caucus, led 101 other Members of Congress in a bipartisan letterurging House and Senate leadership to pass the U.S.-Taiwan double taxation relief measures before the end of the year. The House passed Taiwan-related provisions in the bipartisan Tax Relief for American Families and Workers Act this January which would provide targeted relief from double taxation on U.S. – Taiwan cross-border investment and provide authority for the President to enter into a tax agreement relative to Taiwan. However, efforts to get Taiwan tax relief across the finish line have not yet succeeded, as the Tax Relief for American Families and Workers Act remains stalled in the Senate. In the letter, the Members wrote in part: “Currently, tax disincentives discourage Taiwanese and American companies from expanding reciprocal investments in both economies due to the absence of a bilateral tax arrangement. “Without double tax relief, these disincentives will hinder additional Taiwanese investments in critical sectors, such as semiconductors, within the U.S. economy. The absence of these investments and expertise will make it even more difficult for the United States to lessen its foreign dependency on imports of critical technologies and avert supply chain disruptions that pose ongoing threats to U.S. national security and economic growth. “We can make real progress in removing tax disincentives on U.S. and Taiwan cross-border investments by enacting the U.S.-Taiwan double taxation relief measures this year. We believe there is overwhelming support in the Senate for doing so, as was the case in the House. We urge you to collaborate actively to pass the Taiwan tax provisions passed in the House before the 118th Congress adjourns. U.S. and Taiwanese investors shouldn’t have to wait for the next Congress to act.” Click here or see below for the full text of the letter: Dear Speaker Johnson, Leader Jeffries, Majority Leader Schumer, and Minority Leader McConnell, We are writing to seek your leadership to pass legislation during the remainder of the 118th Congress to address the double taxation issue between the United States and Taiwan. Currently, tax disincentives discourage Taiwanese and American companies from expanding reciprocal investments in both economies due to the absence of a bilateral tax arrangement. As you know, Taiwan is an important strategic and economic partner—it is the only top 10 trading partner with whom the U.S. does not have a formal double taxation arrangement. Taiwan is also a growing source of foreign direct investment (FDI) in the United States—TSMC’s investment in Arizona is the largest FDI in a greenfield project in U.S. history. Existing tax disincentives, such as the double taxation of income, interest, and dividends, make it more costly for U.S. and Taiwanese businesses to expand within each other’s borders. Without double tax relief, these disincentives will hinder additional Taiwanese investments in critical sectors, such as semiconductors, within the U.S. economy. The absence of these investments and expertise will make it even more difficult for the United States to lessen its foreign dependency on imports of critical technologies and avert supply chain disruptions that pose ongoing threats to U.S. national security and economic growth. The 118th Congress has made considerable progress toward addressing this issue, with the House passing Taiwan-related provisions in the bipartisan Tax Relief for American Families and Workers Act. Once enacted into law, this measure would provide targeted relief from double taxation on U.S.-Taiwan cross-border investment and provide authority for the President to negotiate and enter into a tax agreement relative to Taiwan. However, efforts to get Taiwan tax relief across the finish line have not yet succeeded, as the Tax Relief for American Families and Workers Act remains stalled in the Senate. We can make real progress in removing tax disincentives on U.S. and Taiwan cross-border investments by enacting the U.S.-Taiwan double taxation relief measures this year. We believe there is overwhelming support in the Senate for doing so, as was the case in the House. We urge you to collaborate actively to pass the Taiwan tax provisions passed in the House before the 118th Congress adjourns. U.S. and Taiwanese investors shouldn’t have to wait for the next Congress to act. Thank you for your attention to this matter. Sincerely, Rep. Ami Bera, M.D. Rep. Andy Barr Rep. Mark Alford |
