A group of US House members is urging President Biden to negotiate a tax deal with Taiwan. The lawmakers, including Representatives Tom Malinowski (D-NJ), Steve Chabot (R-OH), and Jim Himes (D-CT), sent a letter to Biden on July 18, 2023, advocating for action.
Their argument centers on strengthening economic and security ties between the United States and Taiwan while countering China’s economic coercion. They emphasize Taiwan’s role as a major trading partner and its significance in the global supply chain for semiconductors.
This push comes amid heightened Chinese aggression, prompting the United States to seek stronger relations with Taiwan. In May 2023, the Senate Foreign Relations Committee passed the Taiwan Tax Agreement Act of 2023, which authorizes the Biden administration to negotiate the tax deal. However, the full Senate has not yet addressed the bill.
If successful, the tax deal would be a substantial advancement in the US-Taiwan relationship. It would signal unwavering commitment to Taiwan’s security and prosperity and facilitate increased US business investments, bolstering Taiwan’s economy and countering China’s economic pressure.
The Biden administration has not officially responded to the lawmakers’ letter, but it is likely under consideration. Overall, a tax deal between the US and Taiwan is perceived as a win-win situation, enhancing their relationship while also deterring China’s aggressive actions.
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