Senate Finance Committee Introduces Legislation To Relieve Double-Taxation Of Investments Between The U.S. And Taiwan
Introduction Represents Concrete Step Forward for Bill To Provide Double-Tax Relief, Strengthen U.S.-Taiwan Ties and Spur Economic Development

Washington, D.C.–Senate Finance Committee Ranking Member Mike Crapo (R-Idaho) and Chair Ron Wyden (D-Oregon), with House Ways and Means Chairman Jason Smith (R-Missouri) and Ranking Member Richard Neal (D-Massachusetts), formally introduced legislation to relieve double-taxation of investments between the U.S. and Taiwan.

“Without question, deepening ties with Taiwan and its vibrant democracy is in our nation’s best interests,” said Crapo.  “Building off of the Finance Committee’s unanimous support last month to strengthen those economic ties and encourage cross-border investment, today’s introduction in both the Senate and the House marks an important next step in unlocking opportunities to help workers and businesses of all sizes get ahead in both the U.S. and Taiwan.  In Idaho and throughout our country, our economic and strategic relationship with Taiwan is as important as ever, and I look forward to continuing our work to get this bill expeditiously passed into law.”

“It’s a no-brainer for U.S. jobs and for America’s national security to strengthen our economic partnership with Taiwan,” said Wyden.  “Today is another important step forward toward relieving double-taxation on activity between the U.S. and Taiwan, and supercharging chip manufacturing in America.  It’s not every day you see the bipartisan leaders of Finance and Ways and Means come together to introduce legislation.  I’m committed to continue working closely with Ranking Member Crapo, Chairman Smith and Ranking Member Neal to get our legislation over the finish line.”

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USTR Must Tell Canada The U.S. Will Fight Discriminatory Digital Services Taxes On American Companies

U.S. Senate Finance Committee Ranking Member Mike Crapo (R-Idaho) and Chair Ron Wyden (D-Oregon) called on U.S. Trade Representative (USTR) Katherine Tai to make clear the United States will forcefully defend American employers against the discriminatory taxes being proposed by Canada.

Canada is moving forward with a 3 percent tax on large digital services companies, which would be levied almost exclusively on American companies.  It goes into effect in 2024, but in an unusually punitive design, is retroactive to 2022.

“We appreciate you previously noting that ‘[i]f Canada adopts a [digital services tax, DST], USTR would examine all options . . . .’  Regrettably, Canada’s political leadership has not been dissuaded.  You must now make clear that your office will immediately respond using available trade tools upon Canada’s enactment of any DST.  When you take these steps, you will do so with our full support,” said Crapo and Wyden.

Allowing Canada to target American companies with discriminatory taxes that companies from other nations do not have to pay risks putting all American employers at a competitive disadvantage.

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EARN Act Strengthens Retirement Savings With 28-0 Vote

EARN Act will help Americans save more and save longer.

Washington, D.C.–The U.S. Senate Finance Committee, under the leadership of Ranking Member Mike Crapo (R-Idaho) and Chairman Ron Wyden (D-Oregon), passed the Enhancing Americans Retirement Now (EARN) Act, expanding opportunities for Americans to increase their retirement savings and improving workers’ long-term financial well-being.  The legislation builds on the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 and is based in part on the Retirement Security and Savings Act of 2021, legislation championed by Senators Rob Portman (R-Ohio) and Ben Cardin (D-Maryland).  The bill was approved unanimously by the Committee, 28-0.

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CBO: Inflation Jeopardizes U.S. Fiscal Position

In report to Finance Committee, CBO outlines inflation’s harmful impact on U.S. budget

Washington, D.C.–The Congressional Budget Office (CBO) responded to a request from Republican Members of the Senate Finance Committee for information about budgetary effects of the high and rising inflation that continues to hammer American households.  According to the CBO, inflation and accompanying higher interest rates stemming from inflation further erode the fiscal position of the United States, including adding to the outsized and climbing $30.1 trillion national debt.

“The stealth tax imposed by inflation is hurting all Americans in the grocery aisles, at the gas pump, and in every bill they pay,” said Finance Committee Ranking Member Mike Crapo (R-Idaho).  “While inflation threatens Americans’ pocketbooks today, it also contributes to skyrocketing federal debt that will burden future generations.”

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U.S. SENATE COMMITTEE ON FINANCE

MEMORANDUM

To: Reporters and Editors

From: Keith Chu, Office of Senate Finance Chair Ron Wyden, D-Ore.

Date: February 7, 2022

Re: IRS Plans to Transition Away from ID.me Facial Recognition

Senate Finance Committee Chair Ron Wyden, D-Ore., today released the following statement after the Treasury Department informed his office it is in the process of transitioning away from using the private facial recognition service ID.me to verify IRS.gov accounts:

“The Treasury Department has made the smart decision to direct the IRS to transition away from using the controversial ID.me verification service, as I requested earlier today” Wyden said. “I understand the transition process may take time, but I appreciate that the administration recognizes that privacy and security are not mutually exclusive and no one should be forced to submit to facial recognition to access critical government services.”

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