United States-Taiwan Expedited Double-Tax Relief Act

Floor Speech

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Mr. PANETTA. Mr. Speaker, I thank the gentlewoman for yielding, and I thank the chairman for bringing this bill to the floor.

Mr. Speaker, I rise today to support the United States-Taiwan Expedited Double-Tax Relief Act.

This is a bipartisan bill that would address the issue of double taxation between Taiwan and the United States. That is an issue that has long impaired our mutual investment opportunities, including the ability of the United States to shore up the semiconductor supply chain and fully capitalize on the potential of our partnership with Taiwan.

Mr. Speaker, I don't need to remind my colleagues of the security challenges that we faced during the pandemic, when we dealt with the overwhelming supply chain issues, especially for semiconductor chips.

That shortage led to sky-high prices for everyday items, and it impacted critical industries in healthcare, defense, and the technology sector.

What we quickly realized is that one of the ways that we can prevent such shortages is to partner with trusted producers like Taiwan and increase mutual investment that can lead to supply chain security.

However, that type of investment that is needed for this type of partnership is hard to do when there is double taxation. It simply won't happen when income is taxed in the country where it is earned and then taxed again when it is repatriated back to its home country.

That is just not a recipe for investment, for partnership, for success, and for our security. That is why we need to pass this legislation that allows us to enter into a treaty with Taiwan that limits that type of double taxation.

Mr. Speaker, as was just heard from my colleague from Illinois (Mr. LaHood), Taiwan is the seventh largest trading partner of the United States, yet it is also the largest trading partner without this type of tax agreement.

During both of my two visits to Taiwan last year, this issue came up with President Lai in that he said to our delegation: This is a way to improve our economies and our security.

He knows and we know that the Taiwanese companies that are investing in semiconductor facilities right here in America and are helping fulfill the objectives of the CHIPS and Science Act need the tax relief and regulation clarity now more than ever.

The bipartisan legislation that we are considering today would address this issue by setting a framework for such a treaty, reducing tax withholding rates, and providing clear guidelines for what is taxed, who is taxed, and when it is taxed.

Putting it simply, Mr. Speaker, it would establish clarity and certainty by ending double taxation, encouraging investment, and strengthening our economic partnership.

Mr. Speaker, despite the policy of strategic ambiguity when it comes to the defense of Taiwan, what is clear is that the United States supports the people of Taiwan and a strong economic partnership with Taiwan with this bipartisan legislation that ultimately bolsters our stability, our prosperity, and the security of both of our great nations.

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