Cape News

Legislation aimed at providing fairer tax treatment for American workers and manufacturers has been approved by a bipartisan majority in the U.S. House of Representatives. The United States-Taiwan Expedited Double-Tax Relief Act (H.R. 33) seeks to boost investment in manufacturing jobs within the U.S., with a particular focus on semiconductor and chip production, while also reinforcing national security by strengthening supply chains.

Ways and Means Committee Chairman Jason Smith emphasized the potential benefits of this legislation during his opening statement on the House floor. He stated, "Enacting this legislation will help create jobs here at home. U.S. exports to Taiwan support 188,000 American jobs and Taiwanese investment in the United States supports another 21,000."

Smith further noted that reducing barriers to Taiwanese investment could lead to new manufacturing facilities staffed by American workers, enhancing domestic semiconductor capabilities and decreasing reliance on China. He added, "Enhancing our relationship with Taiwan will strengthen the U.S. economy and our national security."

Speaker Mike Johnson highlighted the economic significance of Taiwan to America following the passage of the bill. "House Republicans understand the significance of America’s economic relationship with Taiwan," he said. Johnson explained that streamlining cross-border tax processes would bolster economic ties and competitiveness while empowering the President to negotiate a tax agreement with Taiwan.

Key points from the legislation include deepening economic ties between the U.S. and Taiwan, which already supports a significant number of American jobs through exports and investments. Establishing a tax treaty is expected to encourage growth in U.S.-based semiconductor manufacturing, thereby securing strategic supply chains.

The act follows previous efforts towards establishing a free trade agreement between the U.S. and Taiwan, reflecting ongoing concerns about reducing dependence on China for critical supply lines.