Washington, Oct. 19 (CNA) Four American congressmen, two from the Senate and two from the House of Representatives, formally introduced legislation Thursday to mitigate double taxation between the United States and Taiwan.
The bill’s sponsors were Senate Finance Committee Chairman Ron Wyden, the committee’s ranking member Mike Crapo, House Ways and Means Chairman Jason Smith, and ranking member Richard Neal. Wyden and Neal are Democrats and Crapo and Smith are Republicans.
The new bill, which builds on the U.S.-Taiwan Expedited Double Tax Relief Act adopted unanimously by the Senate Finance Committee in September, is aimed at easing the burden of double taxation on American and Taiwanese businesses and individuals operating in each other’s country.
“Without question, deepening ties with Taiwan and its vibrant democracy is in our nation’s best interests,” Crapo said in a statement.
The bill’s introduction in both the Senate and House marked an important step in “unlocking opportunities to help workers and businesses of all sizes get ahead in both the U.S. and Taiwan,” he said.
Wyden concurred, saying in the same statement that it was a “no-brainer for U.S. jobs and for America’s national security to strengthen our economic partnership with Taiwan.”
“Today is another important step forward toward relieving double-taxation on activity between the U.S. and Taiwan, and supercharging chip manufacturing in America,” Wyden said.
The bill would amend the Internal Revenue Code of 1986 to provide special rules for the taxation of certain residents of Taiwan with income from sources within the U.S.
According to the bill approved by the Senate committee in September, Taiwan would have to provide benefits to “United States persons” that are “reciprocal to the benefits provided to qualified residents of Taiwan” under the proposed bill.
Smith and Neal also lauded the virtues of the bill in addressing cross-border economic burdens currently faced by American and Taiwanese businesses.
“This bipartisan, bicameral effort will strengthen ties, lead to more jobs, and spur the manufacturing industry,” Neal said, while also using the bipartisan nature of the proposal to highlight the current dysfunction in the House of Representatives.
“Passing much-needed legislation like this is exactly why House Republicans need to join with Democrats in finding a bipartisan path forward to get the House back up and running,” he said.
Since renegade Republicans decided to dump previous speaker Kevin McCarthy on Oct. 3, the Republican caucus has yet to unify behind another candidate.