TAX TAKE: Continued Tax Policy Focus Around the World: Taiwan is Next
As taxwriters in the House of Representatives and Senate assess how to advance their domestic tax policy agenda for the year, your friends at Tax Take have spent the last couple weeks writing about key developments at the Organisation for Economic Cooperation and Development (OECD) and Congress's attention to those issues. This week we continue our trip around the world and will focus on developments relating to Taiwan.
Taiwan tax issues have been heating up in the Senate, with two leading proposals regarding the taxation of U.S.-Taiwan cross-border activity competing for attention. Recently, the Senate Foreign Relations Committee approved a proposal by Chairman Bob Menendez (D-NJ). However, in a bit of jurisdictional tension, his tax plan conflicts with a new draft bipartisan proposal to reduce double taxation from the Chairmen and Ranking Members of the Committees on Finance and Ways and Means, all of whom would prefer to take the lead on this issue.
Along those lines, last week, Chairman Ron Wyden (D-OR) and Ranking Member Mike Crapo (R-ID) announced their plan for the Committee on Finance to mark up Taiwan tax legislation in September. According to their press release, the legislation seeks to strengthen the U.S.'s economic relationship with Taiwan.
It is not immediately clear how the Taiwan turf jockeying will resolve itself in the Senate, but the fact that Senator Menendez also serves as a senior member of the Finance Committee bodes well for an amicable solution.
The Senate is scheduled to return from its August recess on September 5. The House will return the following week. With the Taiwan tax legislation on the front burner and the still-unsettled issue of trying to marry Republican-backed corporate tax extenders with the child tax credit priorities of Democrats, expect a busy September. #TaxTake
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