Panhandle Times

The United States House of Representatives has passed the United States-Taiwan Expedited Double-Tax Relief Act, a piece of legislation aimed at halting the double taxation of American workers and reducing reliance on China. Congressman Nathaniel Moran (R-TX-01) supported the bill, which was introduced by Ways and Means Committee Chairman Jason Smith (R-MO-08). The act seeks to foster a stronger economic partnership between the U.S. and Taiwan.

Congressman Moran emphasized the importance of this legislation for his home state of Texas, where Taiwanese tech companies are making significant investments in advanced manufacturing. He stated, "In my home state of Texas, Taiwanese tech companies are investing billions in advanced manufacturing, but double taxation threatens their ability to operate effectively."

The legislation aims to prioritize American workers by deepening economic ties with Taiwan, which currently supports $1.5 billion in U.S. exports. It also seeks to establish a tax treaty with Taiwan that would benefit U.S.-based semiconductor and chip manufacturers.

Moran highlighted the unequal treatment Americans face without such a treaty: "Americans are currently unable to receive the same tax benefits from Taiwan that are available to other countries." He noted that while Taiwan is one of America's largest trading partners without a tax agreement, it still supports over 22,000 U.S. jobs and contributed $185 million to U.S. research in 2021.

By addressing issues like double taxation and withholding tax rates, the bill aims to strengthen economic ties with Taiwan and reduce dependence on China for critical supply chains.

Moran concluded his remarks by stressing the urgency of passing this legislation: "Without this legislation, we risk alienating one of our strongest partners in the Indo-Pacific region—Taiwan. And we risk ceding more power to China and isolating ourselves further on the global economic stage."

The full text of the legislation is available for public review.