March 03, 2023
Washington, DC) – U.S. Senator Jeanne Shaheen (D-NH) – a senior member of the Senate Foreign Relations and Armed Services Committees – joined a bipartisan group of lawmakers this week led by U.S. Senators Chris Van Hollen (D-MD) and Bill Cassidy (R-LA) on a resolution calling for the enactment of a new tax agreement with Taiwan. The resolution encourages the administration to begin negotiating a tax agreement with Taiwan in order to further strengthen economic ties between the United States and Taiwan.
“I’m glad to join this bipartisan push to reform our tax policy with Taiwan, which would enhance our important economic relationship,” said Shaheen. “A formal income tax agreement is a necessary step to remedy the current issue of double taxation, which will also make it easier for U.S. companies – including those in New Hampshire – to conduct business in Taiwan, the United States’ eighth largest trading partner.”
The resolution is also cosponsored by U.S. Senators Todd Young (R-IN), Tim Kaine (D-VA) and Mitt Romney (R-UT).
The resolution would:
- Encourage the President to begin negotiations and encourage the House to work with the Senate on a congressional-executive agreement to establish an income tax agreement between the United States and Taiwan;
- Recognize the importance of Taiwan’s security and prosperity to the United States’ own security and prosperity and that eliminating double-taxation of U.S. and Taiwan firms could boost bilateral trade and investment, potentially creating new job growth in the United States; and
- Encourage the President to seek other ways to increase trade, technology, and investment ties between the United States and Taiwan.
Senator Shaheen has long supported trade agreements and programs that increase opportunities and growth for New Hampshire businesses. Shaheen was the first New Hampshire Governor to lead trade missions outside of North America and has prioritized efforts in Congress to help small businesses boost their exports. Senator Shaheen also strongly opposed the Trump Administration’s Section 232 tariffs on allies in Canada and Europe, and was instrumental in securing an exclusion process for businesses to apply for relief from the Section 301 tariffs. Last August, Shaheen joined United States Trade Representative Katherine Tai and the Granite State District Export Council for a roundtable discussion to hear from New Hampshire businesses engaged in the export market on how they use trade agreements and programs to help their businesses succeed. In February, Shaheen helped lead bipartisan legislation that would improve America’s competitiveness throughout the African continent and in Latin America and the Caribbean.
Shaheen serves as an honorary co-chair of the Global Tech Security Commission, which seeks to develop a global tech security strategy by engaging lawmakers, world leaders and industry representatives to best inform U.S. policy aimed at confronting shared security and economic strategies in the Indo-Pacific.
Additional Background:
Taiwan is the United States’ largest trading partner with whom we do not currently have an income tax treaty. The U.S. has consistently pursued a robust unofficial partnership with Taiwan, including a strong economic relationship. Two-way trade in goods and services totaled more than $100 billion in 2020. The U.S. already has multiple tax agreements in place with Taiwan, including a transportation income tax agreement and an agreement to facilitate implementation of the Foreign Account Tax Compliance Act (FATCA).
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