Submission for Discussion Draft of Bill Providing Relief for U.S. and Taiwanese Workers and Businesses from Double Taxation

Below is a copy of the submission the Democrats Abroad Global Taxation Task Force submitted to the Senate Finance and Ways & Means Committees for the discussion draft of the bill providing relief for U.S. and Taiwanese workers and businesses from double taxation.

Click here to download a pdf of DA's submission to the Senate Finance and Ways & Means Committees in full.


Dear Chairman Wyden, Ranking Member Crapo, Chairman Smith, and Ranking Member Neal:

We applaud your efforts to strengthen economic ties with Taiwan by passing a bill (the “Discussion Draft”) to relieve double taxation. On July 12 a discussion draft was published on the Ways & Means Committee’s website welcoming comments until July 24, we appreciate the opportunity to submit comments for the record.

We would like to bring to your attention the provisions in the bill that explicitly exclude U.S. citizens from relief including:

  • Under the residency tiebreaker provisions, Taiwanese citizens are relieved from double taxation while U.S. citizens resident in Taiwan are not provided the same protections.
  • Relief as provided under Article 17 Paragraph 2 of the Model Income Tax Convention of 2016 largely fails to provide relief from double taxation and onerous reporting requirements for pension plans.

More broadly, we would like to remind you that there are an estimated nine million Americans living outside the U.S. who suffer from many outdated stereotypes, including:

  • “Only rich Americans live overseas”: Research shows that the overwhelming majority are working- or middle class.
  • “Citizens move to evade taxes or launder money”: Most moved for family or work.

Thank you for the opportunity to provide our suggestions and to point out, once again, the unfair, unnecessary, and unproductive obstacles that Americans living abroad face.


Martha McDevitt-Pugh
International Chair
Democrats Abroad
[email protected]

Rebecca Lammers
Chair, Taxation Task Force
Democrats Abroad
[email protected]