The U.S. House of Representatives on Jan. 15 voted 423-1 to advance a bipartisan bill supported by U.S. Rep. Mike Kelly (R-PA) that would be the first step in establishing an informal tax treaty with Taiwan.
Currently, according to Rep. Kelly, Taiwan is the United States’ largest partner without a tax treaty. The legislation, if enacted, would strengthen investments in semiconductor and chip production in America.
“America should not have to rely on foreign adversaries like China for our supply chains when we can partner with better allies like Taiwan,” Rep. Kelly said. “As conflicts continue to rise across the globe, we must build our relationships with strong democracies, like Taiwan.”
Specifically, the United States-Taiwan Expedited Double-Tax Relief Act, H.R. 33, which U.S. Reps. Jason Smith (R-MO) and Richard Neal (D-MA) introduced on Jan. 3, aims to spur more investment in manufacturing jobs in America, strengthen U.S. supply chains to reinforce national security, and combat China’s influence, according to a bill summary provided by Rep. Kelly, who signed on as a cosponsor of H.R. 33 on Jan. 6.
The House advanced the bill to the U.S. Senate, which on Jan. 16 referred it for consideration to the U.S. Senate Finance Committee.