U.S. Sen. Todd Young (R-IN) and 17 of his Senate Republican colleagues called on the Senate Foreign Relations Committee to schedule a vote on the U.S.-Chile Bilateral Tax Treaty.
Negotiated between the United States and Chile in 2010, the treaty still lacks Senate consent for ratification, according to a Dec. 7 letter the senators sent to Senate Foreign Relations Committee Chairman Bob Menendez (D-NJ) and Ranking Member James Risch (R-ID).
“The treaty is vitally important to U.S. foreign direct investment in Chile,” they wrote. “Without ratification of the treaty, Chilean tax rates are due to increase on U.S. companies’ Chilean operations and could reach a rate of 44.45 percent.”
In comparison, wrote the senators, the Chilean operations of multinational companies headquartered in countries with treaties in force — such as China, Japan, Canada, Australia, and the United Kingdom — would continue to enjoy the current Chilean rate of 35 percent.
A ratified treaty also would benefit both American and Chilean companies, which are eager to increase investments in the United States that have the potential to create thousands of jobs, according to their letter.
“Failure to ratify the treaty could significantly reduce investments by U.S. companies in Chile and weaken the U.S. economy,” wrote Sen. Young and his colleagues. “In order to strengthen the economy and protect U.S. company investments, we ask for your support to ensure the prompt ratification of the U.S.-Chile Tax Treaty.”
Among the lawmakers who joined Sen. Young in signing the letter were U.S. Sens. Richard Burr (R-NC), Thom Tillis (R-NC), Bill Cassidy (R-LA), Roger Wicker (R-MS), Steve Daines (R-MT), and Joni Ernst (R-IA).