[Congressional Record Volume 165, Number 119 (Tuesday, July 16, 2019)]
[Senate]
[Pages S4839-S4840]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]



                                Treaties

  Mr. President, I rise today for the purpose of expressing my support 
for the passage of the resolutions of advice and consent that the 
Senate is considering this week with respect to the protocols to our 
tax treaties with Spain, Switzerland, Japan, and Luxembourg.
  Tax treaties are a very integral part of the architecture of our tax 
system. For example, these treaties would help define the rules of the 
road for cross-border investment and trade for U.S. individuals and 
companies doing business in one of our treaty partner countries, like 
Spain, as an example, and for individuals and companies in those 
countries doing business in the United States.
  The protocols before us today provide important updates to the tax 
treaties with these four countries. In general, several of them lower 
withholding taxes and include provisions to prevent double taxation. 
Several provide mechanisms for resolving disputes in a timely manner 
through mandatory binding arbitration. In addition, they provide 
important updates to the exchange of information provisions in the 
underlying treaties.
  I am aware of the concerns that have been raised regarding the 
standard used to provide for such exchange of information. The standard 
provided for in these protocols is that relevant information shall be 
exchanged between the United States and its treaty partners. That 
relevant standard has been used throughout our treaty network for 
decades and is also the standard used in U.S. domestic tax laws.
  This issue was raised last month in the Foreign Relations Committee, 
and an amendment was offered to the resolution regarding the protocol 
with Spain that would have required a narrower standard. That amendment 
was appropriately defeated. If the issue is raised again as an 
amendment here on the floor, I will urge my colleagues to vote no on 
the amendment.
  These four protocols have been awaiting action by the Senate for many 
years. In some cases, it has been nearly a decade. It is important that 
the Senate fulfill its constitutional duty to provide its advice and 
consent on tax treaties and protocols. It is also important that our 
treaty partners know that the United States really values these 
agreements and negotiates these treaties and protocols in good faith, 
with the expectation that they will be implemented without lengthy 
delays.
  Our actions on these protocols are also timely, given the 
international effort to address the effects of digitalization on the 
international tax system.
  For the past several months, representatives from the Treasury 
Department have been actively engaged in negotiations at the 
Organisation for Economic Co-operation and Development. These talks are 
focused on finding a multilateral agreement to these issues and 
avoiding the regrettable unilateral approach that some countries have 
taken--most notably, France. Ultimately, if these negotiations are 
successful, there could be a need for the United States to update its 
bilateral income tax treaties.
  It is important that the Senate take action on the pending protocols 
and send a strong signal to our treaty partners that the international 
tax agreements are a priority for our country.
  In addition to moving forward on these four protocols, we have three 
new income tax treaties with Chile, Hungary, and Poland that are 
awaiting action by the Foreign Relations Committee. I urge Chairman 
Risch and Ranking Member Menendez to use the wave of momentum that is 
building this week to move forward on those three new treaties and send 
them to the floor of the Senate as soon as possible.
  I thank the chairman and ranking member for moving these protocols to 
the floor. These treaties were reported favorably by the committee by 
voice vote without amendment, and their consideration is long overdue.
  I thank Leader McConnell and Minority Leader Schumer for their 
efforts to bring these protocols up for consideration on the floor this 
week.

[[Page S4840]]

  I urge all of my colleagues to vote yes on these resolutions of 
advice and consent.
  I yield the floor.

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