{"id":2035611,"date":"2023-09-17T23:04:02","date_gmt":"2023-09-18T03:04:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/senate-finance-committee-approves-tax-bill-to-deepen-us-taiwan-economic-relations\/"},"modified":"2023-09-17T23:10:04","modified_gmt":"2023-09-18T03:10:04","slug":"senate-finance-committee-approves-tax-bill-to-deepen-us-taiwan-economic-relations","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/senate-finance-committee-approves-tax-bill-to-deepen-us-taiwan-economic-relations\/","title":{"rendered":"Senate Finance Committee Approves Tax Bill to Strengthen US-Taiwan Economic Ties"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fsenate-finance-committee-approves-tax-bill-to-deepen-us-taiwan-economic-relations%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2035611&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>The\u200b Senate Finance Committee Unanimously \u200dApproves Bill to \u2064Provide Relief for American and\u2064 Taiwanese\u200b Workers\u200d and Businesses<\/h2>\n<p>The Senate Finance Committee has voted unanimously on \u200ba bill to\u2063 provide relief for American and Taiwanese workers and businesses from double taxation. This\u2064 legislation, known as \u2063the U.S.-Taiwan \u2062Expedited Double Tax Relief Act, aims to strengthen the partnership between the two sides.<\/p>\n<p>Sen. Ron Wyden (D-Ore.), who serves as committee \u200dchair, emphasized the importance of Taiwan as a critical\u200d trading \u2064partner. He highlighted the significant investments made by Taiwan in the United States, particularly in the semiconductor sector, which \u200chave resulted\u200d in the creation of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/white-house-releases-list-of-president-trumps-accomplishments-and-it-is-historic\/\" title=\"White House Releases List of President Trump\u2019s Accomplishments \u2013  And It Is Historic!\">good-paying jobs<\/a> across the country.<\/p>\n<p>Taiwan is currently the United States&#8217; ninth largest trading partner, with bilateral\u200c trade between \u200bthe two sides totaling over $120 billion in 2022. \u2064The island is home to Taiwan Semiconductor Manufacturing Corporation (TSMC), the world&#8217;s biggest contract chipmaker, responsible for producing \u2063over 90 percent of the world&#8217;s most advanced semiconductors.<\/p>\n<p>To ensure continued \u2063growth in these investments, Mr. Wyden stressed the need for \u2064relief from double taxation between \u200dthe U.S. and Taiwan. \u2064He emphasized that failing to provide\u200d such relief could result in these investments going to other countries, which would hamper the\u2063 growth of the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/is-war-with-china-in-taiwan-to-protect-semiconductor-production-really-necessary\/\" title=\"Is War with China in Taiwan to Protect Semiconductor Production Really Necessary?\">domestic semiconductor industry<\/a>.<\/p>\n<h3>Legislation<\/h3>\n<figure id=\"attachment_5492828\" aria-describedby=\"caption-attachment-5492828\" style=\"width: 600px\" class=\"wp-caption alignnone\">\n    <a href=\"https:\/\/img.theepochtimes.com\/assets\/uploads\/2023\/09\/17\/id5492828-GettyImages-1239643863-1-1200x800.jpg\"><figcaption id=\"caption-attachment-5492828\" class=\"wp-caption-text\"><noscript><\/noscript><\/figcaption><\/a><\/p>\n<p>    \u2062 \u2062   Sen. Mike\u2064 Crapo (R-Idaho) questions U.S.\u200c Trade Representative Katherine Tai during \u200ca Senate Finance Committee hearing on Capitol\u200c Hill \u2062in Washington on March 31, 2022. (Drew Angerer\/Getty Images)<br \/>\n<\/figure>\n<p>The \u200ddraft of the bill was announced in July through a joint collaboration between \u2064Mr.\u200d Wyden, Finance Committee ranking member Mike Crapo (R-Idaho), and House Ways and Means Committee leaders Chair Jason \u200dSmith (R-Mo.) and Ranking\u2062 Member Richard Neal\u2064 (D-Mass.).<\/p>\n<p>The legislation aims to significantly \u200creduce withholding taxes \u200don dividends, interest, and royalties\u200b paid on cross-border investments. For example, the bill proposes a 10 percent\u200c withholding tax rate for interest and royalties, instead of the current 30 percent rate imposed on U.S. source income received by nonresident aliens and foreign companies.<\/p>\n<p>Mr. Crapo highlighted the impact of the current 30 percent dividend withholding tax on \u2063Taiwanese companies with \u200ba U.S. presence, stating that it hinders additional U.S. investment. He emphasized that the bill&#8217;s \u2063provisions, including applying permanent \u2064establishment rules, would reduce barriers for smaller and mid-sized Taiwanese companies, strengthening domestic supply chains.<\/p>\n<p>If enacted, the \u2064legislation would create a \u2064new section \u2062of the Internal \u200cRevenue Code, providing relief for workers and businesses\u200c in \u200bboth the U.S. and Taiwan.<\/p>\n<p>The 27-0\u200c vote on Sept. 14,\u200b which included support from Sen.\u200b Bob \u200dMenendez (D-N.J.), chairman of the Senate \u2064Foreign Relations Committee, demonstrates bipartisan backing for the bill. In May, Mr. \u200bMenendez and other senators introduced\u200b the \u200cTaiwan Tax Agreement Act of 2023, which passed the \u2064Senate \u200cForeign Relations Committee in July. A\u2062 companion version of the \u2062legislation has been\u2064 introduced in the House.<\/p>\n<p>The Taiwan Tax Agreement\u200b Act of 2023 would\u200d authorize the president to negotiate \u2064and enter\u200c into a \u200btax agreement with Taiwan, allowing\u2062 businesses in the United States and Taiwan to avoid double \u200dtaxation.<\/p>\n<h2>China<\/h2>\n<p>Mr. Wyden emphasized the\u200b need for greater economic cooperation\u200b with Taiwan\u200c in\u200d light of Beijing&#8217;s aggression \u200cagainst the island and the surrounding region. \u200bHe highlighted China&#8217;s efforts to intimidate and isolate Taiwan\u2063 through \u200cdiplomatic and economic coercion,\u200c as well as military actions.<\/p>\n<p>Taiwan&#8217;s defense ministry\u2063 recently reported one of\u2063 China&#8217;s biggest incursions, with\u2063 68 Chinese warplanes and 10 Chinese navy \u2063vessels\u200d near \u2064its territory. The CCP employs various tactics, \u200cincluding military coercion, disinformation campaigns,\u200c and economic coercion,\u200b to sway\u2064 public opinion\u200c and assert its \u2064rule over Taiwan.<\/p>\n<p>Despite Beijing&#8217;s view of Taiwan as a renegade province, Mr. \u2064Wyden\u2062 emphasized that Taiwan is a\u2064 <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/blaine-pardoe-the-advantages-of-running-your-company-like-a-democracy\/\" title=\"Blaine Pardoe: The Advantages of Running Your Company Like a Democracy\">full-fledged democracy<\/a> with its own government, military, constitution, and currency. He stressed the\u2063 importance \u2064of Taiwan&#8217;s role in the\u200c security of democratic \u2064nations and\u2062 the\u2062 need \u2062for \u200bCongress to work towards stabilizing the region.<\/p>\n<p>Hsiao\u200b Bi-khim, Taiwan&#8217;s de facto ambassador to the United States, expressed gratitude\u200b to senators from both parties for their commitment to resolving the double taxation issue.\u2062 She described the bill as an important milestone towards relief in double taxation, with the\u2062 goal\u200b of incentivizing more two-way \u200dinvestments and deeper Taiwan-U.S. economic ties.<\/p>\n<p> <\/p>\n<h2> How \u200cdoes the bill aim to reduce barriers for\u2064 smaller and mid-sized\u2064 Taiwanese companies and strengthen domestic\u200d supply chains<\/h2>\n<p><span>  The bill\u2064 in \u200bthe Senate Finance\u2064 Committee highlights \u2062the bipartisan support \u2062for providing relief to\u2062 American and Taiwanese workers and businesses. It acknowledges the \u200deconomic\u200b significance of\u2063 Taiwan as a trading\u2062 partner\u2063 and the importance \u2064of attracting and retaining investment in key sectors \u2064like semiconductors.<\/p>\n<p>The bill proposes concrete measures to\u2064 address the issue\u200d of double taxation\u200c between the U.S. and Taiwan. By \u2062significantly reducing withholding\u2063 taxes on dividends, interest, and\u200d royalties paid on cross-border investments, it aims to \u200dcreate a\u200b more favorable investment environment for both countries. For \u200cexample, the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/senate-finance-committee-approves-tax-bill-to-deepen-us-taiwan-economic-relations\/\" title=\"Senate Finance Committee Approves Tax Bill to Strengthen US-Taiwan Economic Ties\">proposed \u200c10 percent withholding tax rate<\/a> for interest\u2064 and royalties would\u2063 replace the current \u200c30 percent rate, providing greater\u2063 incentives for investment.<\/p>\n<p>The impact of the\u2063 current dividend withholding tax on Taiwanese companies with\u2064 a U.S. presence\u2062 is highlighted as a hindrance\u200d to additional investment. The bill&#8217;s provisions,\u2063 including the application of permanent establishment\u200c rules,\u2062 would help reduce barriers for smaller and mid-sized Taiwanese companies,\u200c thereby strengthening domestic supply chains.<\/p>\n<p>The unanimous approval of the bill by \u200dthe Senate Finance Committee reflects the recognition of\u200b the potential benefits of\u200d this legislation for \u200bboth American and Taiwanese workers and businesses. The bill&#8217;s passage would \u200dnot only provide relief from double taxation but also strengthen \u2063the \u200bpartnership between the U.S. and Taiwan.<\/p>\n<p>It is important to \u200cnote that this legislation\u2062 aligns with the broader goal of \u200dmaintaining and\u2062 expanding economic ties between the two countries. With\u200c bilateral trade between the U.S. and \u200cTaiwan exceeding $120 billion in 2022, it is clear\u2062 that both sides have much \u200cto gain \u200bfrom fostering a\u2062 strong\u2064 economic partnership.<\/p>\n<p>The bipartisan collaboration behind this bill, with Sen. Ron Wyden taking a lead role as committee chair and Sen. \u200cMike Crapo \u200das ranking member, demonstrates the recognition \u200dof the importance\u200c of \u2063this issue across party lines. Furthermore, the joint collaboration with House Ways \u2064and Means Committee leaders Chair \u200dJason Smith and Ranking Member Richard \u2064Neal underscores the commitment\u200c to finding bipartisan solutions \u200cto promote economic \u2063growth and strengthen trade relations.<\/p>\n<p>In \u200dconclusion, the unanimous approval of the\u200d U.S.-Taiwan Expedited Double Tax Relief\u2064 Act by the Senate \u200dFinance\u2064 Committee represents an important step towards providing relief\u200c for American and Taiwanese workers \u2062and businesses. By addressing the issue \u200bof double taxation and creating a more favorable investment environment, this legislation aims to strengthen the economic \u200bpartnership between the U.S. and Taiwan.\u200c The positive\u200b bipartisan\u2063 support behind this bill reflects the recognition of the\u200d potential benefits for\u2062 both countries \u200band emphasizes the importance of\u200b maintaining and expanding economic\u200c ties.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Senate Finance Committee unanimously approved the U.S.-Taiwan Expedited Double Tax Relief Act. This bill aims to alleviate double taxation burdens on American and Taiwanese workers and businesses. Committee chair Sen. Ron Wyden (D-Ore.) expressed confidence that the legislation would enhance the partnership between the two nations.<\/p>\n","protected":false},"author":1,"featured_media":2035612,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2035611","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2035611","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2035611"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2035611\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2035612"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2035611"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2035611"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2035611"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}