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Tax Relief for American Families and Workers Act Increases U.S. Competitiveness and Resilience Against China’s Economic Influence

January 24, 2024 — Press Releases   

Bipartisan tax package includes key provision to eliminate double taxation on cross border investment between U.S. and Taiwan

Washington, D.C. – China will soon face greater competition from American workers and businesses thanks to new tax legislation passed by the House Ways and Means Committee last week. The United States-Taiwan Expedited Double Relief Tax Act included in the Tax Relief for American Families and Workers Act eliminates double taxation on cross border investments between the United States and Taiwan, leading to further expansion of foreign direct investment in the U.S. and Taiwan, and reducing America’s dependence on China for critical technologies and resources. The tax legislation would not only boost America’s competitiveness, but also make U.S. workers and businesses more resilient against China’s economic influence, as well as strengthen the U.S.-Taiwan relationship in the Indo-Pacific region.  

Ways and Means Chair Jason Smith (MO-08) said:  

“The United States-Taiwan Expedited Double Tax Relief Act is an important step that follows our bipartisan law last year establishing a trade agreement with Taiwan. The U.S.-Taiwan relationship is critically important to the health of American workers and businesses, as well as our national security and the ability to defend against China’s malign influence in the Indo-Pacific. The successful elections held in Taiwan just earlier this month are a testament to their nation’s resilience, particularly in the face of attempts by Beijing to subvert and undermine the democratic process. The Ways and Means Committee looks forward to a continuing dialogue with the people of Taiwan and deepening our economic and cultural relationship.”  

The United States is currently the top destination for outbound Taiwanese investment, which creates more jobs for U.S. workers and spurs research and development spending. As of 2022, total Taiwanese foreign direct investment in the United States was $16 billion and trade flows between the U.S. and Taiwan totaled $161 billion in goods and services. These important investments led to 22,100 U.S. jobs and $185 million in U.S. research expenditures in 2021 by Taiwanese firms. As our relationship with this vital partner in the Indo-Pacific region grows, these investments continue to grow each year, making the United States the preeminent destination for Taiwanese investment.  

Over the last year, the Ways and Means Committee traveled around the country to hear from workers, families, farmers, and small businesses about the challenges they are facing in the current economy. Among their concerns was the looming threat China poses to their jobs and financial livelihood, and the urgent need for Congress to act.  

Key stakeholders have come out in support of the inclusion of these important provisions that will strengthen the U.S.-Taiwan relationship and give American businesses and workers the green light to invest, grow, and boost wages in ways they need to outcompete our largest economic adversary, China.  

Taipei Economic and Cultural Representative Office (TECRO):  

US Taiwan Business Council:  

National Foreign Trade Council (NFTC):  

Information Technology Industry Council (ITI):  

Global Business Alliance (GBA):  

Semiconductor Industry Association (SIA):  

Taiwan Semiconductor Manufacturing Co. (TSMC):