A bill to terminate the United States-People's Republic of China Income Tax Convention if the People's Liberation Army initiates an armed attack against Taiwan.
Impact
If enacted, SB3861 would significantly impact U.S.-China relations by potentially penalizing China economically in response to military actions against Taiwan. The removal of this tax convention would mean that financial transactions between the U.S. and China could be subjected to different and possibly more punitive tax treatments. Such a move could also lead to increased tensions in the region and may elicit retaliatory actions from China, potentially affecting American businesses and investors operating in China.
Summary
Senate Bill 3861 proposes the termination of the United States-People’s Republic of China Income Tax Convention in the event that the People's Liberation Army initiates an armed attack against Taiwan. This legislative action is presented as a response to any military aggression towards Taiwan and signifies a potential shift in U.S. foreign policy regarding China, focusing on maintaining a strong stance in international relations and defense. The bill mandates that the Secretary of the Treasury notify China of this termination within 30 days of such military actions, thereby instituting a clear linkage between military aggression and economic repercussions.
Contention
Some notable points of contention surrounding SB3861 could include debates on its effectiveness and potential consequences. Critics may argue that terminating the tax convention does not necessarily deter military aggression and could instead escalate tensions further. Additionally, there are concerns regarding the economic ramifications for American companies and citizens doing business with China, as the absence of the tax convention may lead to stricter taxation and complications in bilateral financial relations. Supporters, however, assert that a strong response is necessary to uphold U.S. commitments to Taiwan and maintain global peace.
Related
To terminate the United States-People's Republic of China Income Tax Convention if the People's Liberation Army initiates an armed attack against Taiwan.
To terminate the United States-People's Republic of China Income Tax Convention if the People's Liberation Army initiates an armed attack against Taiwan.
Reaffirming the United States-Philippines alliance and condemning the gray zone campaign of the People's Republic of China in the South China Sea against the Philippines, and for other purposes.
A bill to mobilize United States strategic, economic, and diplomatic tools to confront the challenges posed by the People's Republic of China and to set a positive agenda for United States economic and diplomatic efforts abroad, and for other purposes.
Condemning the People's Republic of China Coast Guard's repeated violations of international maritime law and aggression toward the Philippines, Taiwan, Japan, and Malaysia.
A resolution remembering the victims of the 1989 Tiananmen Square Massacre, and condemning the widespread repression against citizens, the transnational repression against activists and other individuals, and the systematic efforts to undermine human rights norms within and outside of the United Nations system by the People's Republic of China.
Expressing the sense of Congress that the United States should resume normal diplomatic relations with Taiwan, negotiate a bilateral free trade agreement with Taiwan, and support Taiwans membership in international organizations.
A bill to reduce the number of student visas available to nationals of the People's Republic of China until China removes certain restrictions on United States students pursuing postsecondary educational opportunities in China and to restrict the types of postsecondary study available to Chinese nationals in the United States to include sensitive topics with potential dual-use military application.
A resolution calling on the Government of Panama to expel officials and interests of the People's Republic of China and terminate Chinese management of key Panamanian ports.