Bill > S2646

This bill, known as the "No Tax Treaties for Foreign Aggressors Act," establishes a specific condition for terminating the tax treaty between the United States and the People's Republic of China. If the People's Liberation Army (PLA) initiates an armed attack against Taiwan, the Secretary of the Treasury would be required to provide written notice to China of the United States' intent to terminate the existing income tax convention, which was originally signed in 1984 and went into effect in 1987. The termination notice would be issued within 30 days of the President notifying the Treasury Secretary about the PLA's armed attack. Additionally, the bill mandates that the President must submit written notification of this potential treaty termination to the Senate's Committee on Foreign Relations and the Senate's Committee on Finance. The legislation appears to be a diplomatic and economic deterrent aimed at discouraging potential military aggression by China against Taiwan, using the tax treaty as a potential point of leverage.

Government Affairs

https://www.congress.gov/bill/119th-congress/senate-bill/2646/all-info