U.S. Rep. Michael McCaul (R-TX) on July 19 helped lead almost a dozen colleagues in proposing bipartisan legislation that would set up a tax agreement between the United States and Taiwan to spur investment, protect against tax evasion, and allow businesses in both countries to avoid double taxation.
“As the Chinese Communist Party’s increasing aggression towards Taiwan continues, it is more important than ever we find ways to strengthen our economic ties,” said Rep. McCaul, chairman of the U.S. House Foreign Affairs Committee, who signed on as the lead original cosponsor of the Taiwan Tax Agreement Act of 2023, H.R. 4729, which is sponsored by U.S. Rep. Gerry Connolly (D-VA).
Specifically, H.R. 4729 would establish the tax agreement between the American Institute in Taiwan (AIT) and the Taipei Economic and Cultural Representative Office (TECRO), according to the bill’s text.
“I am proud to introduce this important, bipartisan legislation that will strengthen our economic relationship with Taiwan,” Rep. McCaul said. “In addition to the advantages we will receive from more investment from Taiwan, this is another important step in safeguarding Taiwan and maintaining peace and stability in the Indo-Pacific.”
Among the 10 other members who joined Rep. McCaul as an original cosponsor of H.R. 4729 were U.S. Reps. Andy Barr (R-KY), John Curtis (R-UT), Ann Wagner (R-MO), Guy Reschenthaler (R-PA), and Young Kim (R-CA). Companion legislation was introduced in May by U.S. Sens. Bob Menendez (D-NJ) and Jim Risch (R-ID).
“As one of the world’s largest economies and a major regional player, Taiwan is a critical economic partner for the United States,” said Rep. Connolly. “We must do all we can to strengthen that partnership, including by implementing a tax agreement that further removes barriers between us and benefits businesses in both the U.S. and Taiwan.”