House · HR 33 · 119th Congress
To amend the Internal Revenue Code of 1986 to provide special rules for the taxation of certain residents of Taiwan with income from sources within the United States.
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Summary
This bill cuts U.S. tax rates on money earned in America by people and companies based in Taiwan. It lowers taxes on dividends, interest, and royalties from 30 percent to 10 or 15 percent. It also lets the President negotiate a full tax agreement with Taiwan, which Congress must then approve.
In Favor
Taiwan residents who earn money in the U.S. are taxed twice, once by each side, with no treaty to fix that. This bill cuts those rates right away and sets up a path to a full tax deal. Lower double-taxation should bring more Taiwanese investment and workers into the U.S. economy.
Against
Cutting tax rates for Taiwan residents reduces U.S. tax revenue with no guarantee Taiwan will offer equal benefits in return. The bill requires the Secretary to confirm that Taiwan has matched the deal, but that check could take time or never fully happen. American taxpayers bear the cost while the benefit depends on another government's choices.
Additional Considerations
Purpose & Problem
Is the problem real and worth federal action?
The bill changes U.S. tax rules to reduce the amount Taiwan residents pay on U.S.-source income, such as dividends, interest, and wages, and sets up a path to negotiate a full tax agreement with Taiwan.
Scope & Related Provisions
Does it stay focused, or carry unrelated add-ons?
The bill stays focused on its core purpose. Title I sets the new tax rates, and Title II creates the steps Congress and the President must follow to negotiate and approve a broader tax agreement with Taiwan.
Who Is Affected
Who benefits, and who bears the cost?
Taiwan residents who earn U.S.-source income would pay lower tax rates under this bill. U.S. employers, banks, and other payers who withhold taxes on payments to Taiwan residents would face new rules about how much to withhold.
Cost & Funding
Is it affordable and responsibly funded?
The bill does not state a dollar amount, appropriation, or a CBO cost estimate. It reduces the tax rate on certain payments to Taiwan residents from 30 percent to 10 or 15 percent, which changes how much tax the federal government collects from those payments.
Risks & Implementation
What could go wrong in practice?
The bill only takes effect if the Treasury Secretary confirms Taiwan provides equal benefits to U.S. persons. The Treasury must also write new rules to guide employers and payers, and delays in issuing those rules could slow the bill's practical use.
For the actual bill text, see congress.gov.
AI-generated · Published 7/24/2026