Washington, D.C. – U.S. Senators Catherine Cortez Masto (D-Nev.), John Cornyn (R-Texas), Chris Coons (D-Del.), and Bill Cassidy (R-La.) introduced legislation that would require the U.S. Department of the Treasury to terminate the U.S.-China Tax Treaty within 30 days of a Presidential determination that China has initiated an armed attack on Taiwan.
“Taiwan is one of our most important partners in the Indo-Pacific, and the U.S. will continue to support Taiwan’s democratic values and hold the Chinese Communist Party accountable,” said Senator Cortez Masto. “This legislation will help deter aggression in the region by making it clear that the U.S. will not give favorable tax treatment to countries that make war on their neighbors.”
“The United States must make it crystal clear the Chinese Communist Party will face dire consequences if it moves to invade Taiwan,” said Senator Cornyn. “This legislation would require the Treasury Department to terminate the U.S.-China Tax Treaty if the Chinese Communist Party initiates an armed attack on Taiwan, and I urge my colleagues to support it.”
“The security of our partners in the Indo-Pacific is critical to American trade objectives, regional stability, and fostering democracy around the world,” said Senator Coons. “That’s why I am proud to cosponsor this bipartisan legislation to signal that potential aggression from the Chinese against Taiwan would be seriously detrimental to our economic relationship and incur immediate, severe consequences.”
“It is common sense that if China attacks our ally, then China should be penalized,” said Senator Cassidy. “This is part of that penalty.”
Last October, Senators Cortez Masto and Cornyn also sent a letter urging the Biden administration to terminate the United States’ tax treaty with Russia as a consequence of Russian President Vladimir Putin’s illegal and unprovoked war in Ukraine.
Senator Cortez Masto has been working to support Taiwan and push back against influence from the Chinese Communist Party. Last Congress, Senator Cortez Masto helped introduce bipartisan legislation to support Taiwan’s public health efforts against threats from the Chinese government. She’s also introduced bipartisan legislation to strengthen the domestic supply chain for rare-earth magnets, which are critical components of cell phones, computers, defense systems, and electric vehicles, but are almost exclusively made in China.
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