United States-Taiwan Expedited Double-Tax Relief Act

Floor Speech

BREAK IN TRANSCRIPT

Mr. SMITH of Missouri. Mr. Speaker, pursuant to House Resolution 5, I call up the bill (H.R. 33) to 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 United States, and ask for its immediate consideration in the House.

The Clerk read the title of the bill.

Mr. Speaker, I rise in strong support of the United States-Taiwan Expedited Double-Tax Relief Act, bipartisan legislation that will unleash more American manufacturing investment and jobs and help combat China's harmful influence.

For too long, America has been too dependent on China. It comes at a high price, as communities across this country lose jobs and live with little hope for the future. It also puts America's national security at risk.

This bill before us establishes fair tax treatment for both American workers and businesses operating in Taiwan and puts Americans on equal footing with our competitors around the world.

Enacting this legislation will help create jobs right here at home. U.S. exports to Taiwan support 188,000 American jobs, and Taiwanese investment in the United States supports another 21,000. Reducing burdens on Taiwanese investment in America will help aid in building new cutting-edge manufacturing plants staffed by American workers. It will help support our domestic semiconductor and chip manufacturing capabilities, securing strategic supply chains and helping us further move away from China.

Citizens and companies from countries like Great Britain, Japan, Australia, and New Zealand and the European Union all enjoy better tax treatment than Americans in Taiwan currently do. That is not right. In fact, the United States is Taiwan's largest trading partner without a tax treaty.

Enhancing our relationship with Taiwan will strengthen the U.S. economy and our national security. Instead of leaving critical supply chains in the hands of the Chinese Communist Party, we need to be making more goods in America, or in partnership with allies like Taiwan that share our interests, to reduce our dependence on China.

This legislation has strong bipartisan support. Last Congress, we took action in authorizing and establishing the first steps in a free trade agreement between the U.S. and Taiwan. As we continue to grow our economic relationship together, a tax treaty represents the logical next move. Advancing this legislation to President Trump's desk is the right thing to do for American workers and our economy as a whole.

I thank Ranking Member Neal for helping lead this effort and introducing this legislation with me. Today, we are showing the world that American leaders are united in standing up for our workers and businesses.

Mrs. MILLER of West Virginia. Mr. Speaker, I thank Chairman Smith for yielding me time.

Mr. Speaker, I rise today in support of H.R. 33. Taiwan and the United States have a long and productive relationship. Last fall, I had the opportunity to visit Taipei and learn about the robust investments Taiwan is making right there in semiconductor manufacturing. Taiwanese companies are also making large investments right here in the United States.

Ending double taxation between our two countries will be beneficial to both the American businesses in Taiwan and the Taiwanese businesses investing in the United States. I deeply value our continued partnership with our ally Taiwan, and I know that this bill will go a long way to secure our economic relationship for years to come.

As a member of the Trade Subcommittee, ensuring mutually beneficial relationships with our allies is very important to me. Of course, being a West Virginian, I always welcome our friends from Taiwan to come visit our beautiful State.

Mr. Speaker, to continue to rely on China for critical items like semiconductors and chips is very dangerous. There is no reason America can't make those same items. This bipartisan bill will remove unfair tax barriers for American workers and businesses, strengthen our Nation's manufacturing base, and grow jobs right here at home.

The United States is Taiwan's largest trading partner without a tax treaty, and that means American workers are at a disadvantage. If the relationship between the United States and Taiwan is to serve as a defense against China, our workers must be on equal footing with one another. I hope my colleagues will join me in supporting this critical bill that will shift control over our economy away from China and back toward American workers and businesses.

BREAK IN TRANSCRIPT

Mr. SMITH of Missouri. Mr. Speaker, on that I demand the yeas and nays.

The yeas and nays were ordered.

BREAK IN TRANSCRIPT

Source