Senate Democrats are considering a bill that would give tax breaks to Taiwanese companies and are gauging interest in using a fast-track process to pass the bill.
The tax breaks for Taiwan were included as a provision in a larger tax bill that passed the House by a wide margin earlier this year but failed to pass the Senate in the summer.
A Senate Finance Committee aide told The Hill that the bill is on a “hotline” and could pass unanimously if no senators object beforehand.
“Nothing has been decided yet.” [vote by universal consent] But keep all options open,” the aide said.
Provisions of the Taiwan law passed by the House of Representatives include lower withholding tax rates on dividends and royalties from U.S. companies to Taiwanese residents and an increase in the tax threshold for Taiwanese companies also incorporated in the United States. are.
Certain wages for Taiwanese workers in the United States would also be exempt from tax, and rules for companies to obtain Taiwanese residency status could be relaxed.
The move comes ahead of an expected change in U.S. trade posture by the incoming Trump administration, which could have geopolitical implications, particularly for U.S.-China relations.
President-elect Trump has promised to raise tariffs on China, Canada and Mexico as soon as he takes office, potentially sparking a trade war.
President Trump has promised to impose particularly tough new restrictions on China, including 60% tariffs on importers.
Taiwan, a U.S. ally that China considers part of its territory, has become an economic flashpoint for these tensions, with China conducting military exercises in waters around the island.
The US position on Taiwan has long been described as one of strategic ambiguity, but President Trump over the weekend declined to say whether he would defend Taiwan in the event of a Chinese invasion. seems to have been maintained.
“I would never say that, because we would have to negotiate, right?” Trump said on NBC's “Meet the Press.”
“I think it's better if they don't do it. Relations with President Xi are very good. [Jinping]. We continue to communicate with each other,” Trump said, referring to the president of the People's Republic of China in an interview published Sunday.
