[Congressional Record Volume 171, Number 9 (Thursday, January 16, 2025)]
[Extensions of Remarks]
[Page E39]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]





          UNITED STATES-TAIWAN EXPEDITED DOUBLE-TAX RELIEF ACT

                                 ______
                                 

                               speech of

                          HON. BETTY McCOLLUM

                              of minnesota

                    in the house of representatives

                      Wednesday, January 15, 2025

  Ms. McCOLLUM. Mr. Speaker, I rise today in support of H.R. 33, the 
United States-Taiwan Expedited Double-Tax Relief Act.
  When a United States resident or business has income subject to 
taxation in another country, or vice-versa, they face double taxation 
and must pay both U.S. taxes and taxes of the other nation. However, 
the United States may enter into a tax treaty with a country to 
mitigate this double-taxation for residents and companies earning 
income in each of the countries. The United States has entered into 
these bilateral tax treaties with 60 other countries.
  The United States and China have a bilateral tax treaty dating to 
1984, which sets the reciprocal rate of withholding at a reduced rate 
of 10 percent. However, this treaty has not covered residents of 
Taiwan, Hong Kong, or Macau. H.R. 33 would create a legislative fix to 
the double-taxation of Taiwanese residents and companies earning income 
in the United States by reducing the withholding tax rates on certain 
on U.S. income from 30 percent to 10 percent. These provisions would 
not go into effect until Taiwan provides those same benefits to U.S. 
persons and businesses. This bill would bring our tax policy for Taiwan 
into alignment with the rates in our tax treaty with China.
  In 2022, I was proud to support the CHIPS and Science Act (Pub. L. 
117-167), a law to bring semiconductor supply chains back to the United 
States. CHIPS investments are already creating jobs and improving our 
national security, including through a $123 million award to Polar 
Semiconductor in Minnesota that will double their production capacity 
for sensor and power chips. Taiwan leads the market in semiconductor 
manufacturing and thanks to the CHIPS and Science Act, the Taiwan 
Semiconductor Manufacturing Company (TCMC) announced last April that it 
would make an over $65 billion investment in a semiconductor factory in 
Arizona, the largest direct foreign investment in a new project in 
United States history.
  Passage of H.R. 33 will incentivize further investment from Taiwan 
into the United States which will create more jobs for hardworking 
Americans and strengthen our domestic supply chains. I join my 
colleagues in supporting this legislation.

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