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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Bill ID: 119/hr/33
Last Updated: July 17, 2026

Sponsored by

Rep. Smith, Jason [R-MO-8]

ID: S001195

Follow the money

The bill

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.

HR. 33, 119th Congress — read as touching Commercial Banks.

The sponsor

Rep. Smith, Jason [R-MO-8]

Every bill has someone who introduced it. That name is where the paper trail starts.

The money

$860,875 raised

21 itemised contributions to this sponsor, pulled from FEC filings.

The alignment

85% match to Project 2025

This bill's text tracks the "Department of the Treasury" section, p. 745-747 of the Mandate for Leadership.

Bill's Journey to Becoming a Law

Track this bill's progress through the legislative process

Latest Action

Received in the Senate and Read twice and referred to the Committee on Finance.

January 15, 2025

Introduced

Committee Review

Floor Action

Passed House

Senate Review

📍 Current Status

Next: Both chambers must agree on the same version of the bill.

🎉

Passed Congress

🖊️

Presidential Action

⚖️

Became Law

📚 How does a bill become a law?

1. Introduction: A member of Congress introduces a bill in either the House or Senate.

2. Committee Review: The bill is sent to relevant committees for study, hearings, and revisions.

3. Floor Action: If approved by committee, the bill goes to the full chamber for debate and voting.

4. Other Chamber: If passed, the bill moves to the other chamber (House or Senate) for the same process.

5. Conference: If both chambers pass different versions, a conference committee reconciles the differences.

6. Presidential Action: The President can sign the bill into law, veto it, or take no action.

7. Became Law: If signed (or if Congress overrides a veto), the bill becomes law!

Bill Summary

Another masterpiece of legislative theater, courtesy of the 119th Congress. Let's dissect this farce, shall we?

HR 33, the "United States-Taiwan Expedited Double-Tax Relief Act," is a bill that reeks of special interest pandering and crony capitalism. On its surface, it appears to be a benevolent attempt to provide tax relief to Taiwanese residents with income from US sources. But don't be fooled – this is just a cleverly crafted Trojan horse designed to benefit a select few at the expense of everyone else.

The bill creates new regulations that modify existing tax codes, specifically targeting interest, dividends, and royalties received by or paid to qualified Taiwanese residents. It's a complex web of exemptions, exceptions, and special rules that will undoubtedly confuse even the most seasoned tax experts. But don't worry, I'll break it down for you.

The affected industries are primarily finance, real estate, and shipping – surprise, surprise! These sectors have deep pockets and influential lobbyists who've likely been whispering sweet nothings into the ears of our esteemed lawmakers. The compliance requirements will be a nightmare, with timelines that will give accountants and lawyers plenty of billable hours.

Now, let's talk enforcement mechanisms and penalties. Ah, yes – the part where we pretend to hold people accountable for their actions. Don't worry; it's all just window dressing. The bill includes provisions for withholding taxes and reporting requirements, but we all know how well those work in practice (cough, cough, Panama Papers).

The economic impact of this bill will be a mixed bag, but rest assured that the real beneficiaries will be the wealthy elite and their corporate cronies. Taiwanese residents with significant US-sourced income will get a nice tax break, while everyone else will foot the bill. It's just another example of trickle-down economics in action – or rather, inaction.

In conclusion, HR 33 is a textbook case of regulatory capture, where special interests hijack the legislative process to further their own agendas. It's a disease that plagues our system, and this bill is just one symptom of a much larger problem. So, let's give it a name: "Taiwanese Tax Relief Syndrome" – a condition characterized by excessive greed, cronyism, and a complete disregard for the public interest.

Diagnosis: Terminal stupidity, with a side of corruption and a dash of incompetence. Prognosis: Poor, unless we somehow manage to cure our lawmakers of their addiction to special interests and lobbyist largesse.

Generated using Llama 3.1 70B (Dr. Haus personality)

💰 Campaign Finance Network

Rep. Smith, Jason [R-MO-8]

Congress 119 • 2024 Election Cycle

Total Contributions
$860,875
18 donors
PACs
$0
Organizations
$3,300
Committees
$0
Individuals
$857,575

No PAC contributions found

1
CHOCTAW NATION OF OKLAHOMA
1 transaction
$3,300

No committee contributions found

1
ROWAN, MARC
1 transaction
$289,100
2
WEISBERG, WILLIAM I
3 transactions
$150,000
3
DAVIS, JAMES C
1 transaction
$100,000
4
SMITH, JEFFREY E
2 transactions
$100,000
5
PEMBERTON, LEWIS
1 transaction
$40,000
6
KAMPETER, MICHAEL
1 transaction
$25,000
7
FRALIN, W. HEYWOOD
1 transaction
$25,000
8
ESTES, J. NORMON
1 transaction
$15,000
9
PARKER, SEAN
1 transaction
$13,200
10
POLIZZI, JOSEPH P.
1 transaction
$13,200
11
CATSIMATIDIS, JOHN
1 transaction
$13,200
12
KAPP, WILLIAM K. III
1 transaction
$13,200
13
STAHL, LEWIS A
1 transaction
$12,500
14
STAHL, MARLENE F
1 transaction
$12,500
15
HILDEBRAND, MELINDA
1 transaction
$12,075
16
WAID, CHARLIE
1 transaction
$12,000
17
GROFF, SUSAN
1 transaction
$11,600

Cosponsors & Their Campaign Finance

This bill has 10 cosponsors. Below are their top campaign contributors.

Rep. Neal, Richard E. [D-MA-1]

ID: N000015

Top Contributors

10

1
SHAKOPEE MDEWAKANTON SIOUX COMMUNITY
OrganizationPRIOR LAKE, MN
$3,300
Apr 30, 2024
2
SHAKOPEE MDEWAKANTON SIOUX COMMUNITY
OrganizationPRIOR LAKE, MN
$3,300
Jun 5, 2023
3
CHOCTAW NATION OF OKLAHOMA
OrganizationDURANT, OK
$1,000
Oct 14, 2024
4
CHOCKTAW NATION OF OKLAHOMA
OrganizationDURANT, OK
$825
Sep 30, 2023
5
GRINSPOON, HAROLD
HAROLD GRINSPOON FOUNDATION • FOUNDER
IndividualWEST SPRINGFIELD, MA
$6,200
Jul 31, 2024
6
BICKWIT, LEONARD JR.
MILLER & CHEVALIER • ATTORNEY
IndividualWASHINGTON, DC
$5,000
Sep 30, 2024
7
WINN, KAREN
SELF • AUTHOR
IndividualBOSTON, MA
$3,300
Nov 5, 2024
8
WALTERS, ROBERT
ROCKET MORTGAGE • CEO
IndividualBIRMINGHAM, MI
$3,300
Mar 30, 2023
9
DEPOALO, RON
FIDELITY INVESTMENTS • EXECUTIVE MANAGEMENT
IndividualBOSTON, MA
$3,300
Sep 23, 2023
10
FRENCH GATES, MELINDA
PIVOTAL VENTURES • FOUNDER
IndividualREDMOND, WA
$3,300
Dec 5, 2023

Rep. Buchanan, Vern [R-FL-16]

ID: B001260

Top Contributors

10

1
RICHARDS, CHRISTINE
CVP • CUST/BUS TRANS
IndividualBARTLETT, TN
$3,300
Oct 28, 2024
2
RICHARDS, DANIEL
DR. CONSULTING • CPA
IndividualBARTLETT, TN
$3,300
Oct 28, 2024
3
GARCIA, MARIO
EMSI - TAMPA • PRESIDENT/CEO
IndividualTAMPA, FL
$3,300
Nov 28, 2023
4
BENJAMIN, STEPHEN
VALIDUS SENIOR LIVING • CEO
IndividualODESSA, FL
$3,300
Nov 10, 2023
5
GARCIA, IVIS
HOMEMAKER • HOMEMAKER
IndividualTAMPA, FL
$3,300
Nov 28, 2023
6
GARCIA, MARIO
EMSI - TAMPA • PRESIDENT/CEO
IndividualTAMPA, FL
$3,300
Nov 28, 2023
7
GARCIA, IVIS
HOMEMAKER • HOMEMAKER
IndividualTAMPA, FL
$3,300
Nov 28, 2023
8
JOHNSON, TRAVIS
1607 STRATEGIES • FOUNDER
IndividualARLINGTON, VA
$3,300
Dec 6, 2023
9
COPELAND, GERRET
TERREG MANAGEMENT LLC • CEO
IndividualSARASOTA, FL
$3,300
Feb 7, 2023
10
COPELAND, KYM
HOMEMAKER • HOMEMAKER
IndividualSARASOTA, FL
$3,300
Feb 7, 2023

Rep. Doggett, Lloyd [D-TX-37]

ID: D000399

Top Contributors

10

1
ALABAMA-COUSHATTA TRIBE OF TEXAS
OrganizationLIVINGSTON, TX
$1,000
Oct 1, 2024
2
DENNISON, ROBERT A. III
SELF-EMPLOYED • ATTORNEY
IndividualAUSTIN, TX
$3,300
Jun 28, 2024
3
WEBER, THOMAS M
MCELROY, SULLIVAN, MILLER, & WEBER LLP • ATTORNEY
IndividualWEST LAKE HILLS, TX
$3,300
Apr 19, 2024
4
CONYNGHAM, JIM
N/A • NOT EMPLOYED
IndividualAUSTIN, TX
$3,300
Jun 28, 2024
5
BARNES, BEN F.
BEN BARNES GROUP • CONSULTANT
IndividualAUSTIN, TX
$3,300
Apr 24, 2024
6
LOOK JAMESON, MARION
N/A • RETIRED
IndividualAUSTIN, TX
$3,300
Sep 1, 2023
7
MOK, AMY WONG
ASIAN AMERICAN CULTURAL CENTER • EDUCATION
IndividualAUSTIN, TX
$3,300
Aug 29, 2023
8
LINEBARGER, DALE
N/A • RETIRED
IndividualAUSTIN, TX
$3,300
Sep 18, 2023
9
VARNEY, LANA K.
KING & SPALDING • ATTORNEY
IndividualAUSTIN, TX
$3,300
Sep 17, 2023
10
YANCY, HOWARD CHARLES
ZYDECO DEVELOPMENT • REAL ESTATE DEVELOPER
IndividualAUSTIN, TX
$3,300
Aug 28, 2023

Rep. Smith, Adrian [R-NE-3]

ID: S001172

Top Contributors

10

1
PECHANGA BAND OF LUISENO INDIANS
OrganizationTEMECULA, CA
$3,300
Jul 25, 2024
2
PARKER, SEAN
SEAN N PARKER FOUNDATION • CHAIRMAN
IndividualPALO ALTO, CA
$13,200
Feb 28, 2024
3
ANDERSON, S MICKEY MR.
BAXTER AUTOMOTIVE GROUP • PRESIDENT
IndividualOMAHA, NE
$13,200
Apr 6, 2023
4
STINSON, KENNETH E. MR.
PETER KIEWIT SONS INC. • CHAIRMAN EMERITUS
IndividualOMAHA, NE
$13,200
Apr 6, 2023
5
CASSLING, MICHAEL MR.
CASSLING DIAGNOSTIC • PRESIDENT AND CEO
IndividualOMAHA, NE
$13,200
Aug 3, 2023
6
HAWKINS, FRED H. MR. JR.
HAWKINS CONSTRUCTION COMPANY • CEO
IndividualOMAHA, NE
$6,600
Nov 5, 2023
7
KORALESKI, JACK MR.
RETIRED • RETIRED
IndividualOMAHA, NE
$6,600
May 1, 2023
8
SCHWARZMAN, STEPHEN
BLACKSTONE • CEO/ CHAIRMAN
IndividualNEW YORK, NY
$6,600
Jun 20, 2023
9
SCHWARZMAN, CHRISTINE
RETIRED • RETIRED
IndividualNEW YORK, NY
$6,600
Jun 21, 2023
10
DUGAN, VINCENT J. MR.
TREGO DUGAN AVIATION OF GRAND ISLAND • PRESIDENT
IndividualNORTH PLATTE, NE
$6,600
Sep 28, 2023

Rep. Thompson, Mike [D-CA-4]

ID: T000460

Top Contributors

10

1
ACTBLUE
COMSOMERVILLE, MA
$500
Oct 27, 2024
2
ACTBLUE
COMSOMERVILLE, MA
$30
Nov 3, 2024
3
SHINGLE SPRINGS BAND OF MIWOK INDIANS
OrganizationSHINGLE SPRINGS, CA
$3,300
Sep 30, 2023
4
YOCHA DEHE WINTUN NATION
OrganizationBROOKS, CA
$3,300
Dec 22, 2023
5
YOCHA DEHE WINTUN NATION
OrganizationBROOKS, CA
$3,300
Dec 22, 2023
6
EASTERN BANK OF CHEROKEE INDIANS
OrganizationCHEROKEE, NC
$3,300
Feb 7, 2024
7
HABEMATOLEL POMO OF UPPER LAKE
OrganizationUPPER LAKE, CA
$3,300
Jun 23, 2024
8
FEDERATED INDIANS OF GRATON RANCHERIA
OrganizationROHNERT PARK, CA
$3,300
May 23, 2023
9
FEDERATED INDIANS OF GRATON RANCHERIA
OrganizationROHNERT PARK, CA
$3,300
May 23, 2023
10
MOORETOWN RANCHERIA
OrganizationOROVILLE, CA
$3,300
Sep 28, 2024

Rep. Kelly, Mike [R-PA-16]

ID: K000376

Top Contributors

10

1
SYCUAN BAND OF THE KUMEYAAY NATION
OrganizationEL CAJON, CA
$3,300
Dec 31, 2024
2
MASHANTUCKET PEQUOT TRIBE
OrganizationLEDYARD, CT
$3,300
Oct 23, 2023
3
MORONGO BAND OF MISSION INDIANS
OrganizationBANNING, CA
$3,300
Mar 24, 2023
4
MORONGO BAND OF MISSION INDIANS
OrganizationBANNING, CA
$3,300
Sep 30, 2024
5
SANTA YNEZ BAND OF MISSION INDIANS
OrganizationSANTA YNEZ, CA
$3,000
Sep 30, 2024
6
SANTA YNEZ BAND OF MISSION INDIANS
OrganizationSANTA YNEZ, CA
$3,000
Nov 4, 2024
7
SANTA YNEZ BAND OF MISSION INDIANS
OrganizationSANTA YNEZ, CA
$2,300
Jun 28, 2024
8
SANTA YNEZ BAND OF MISSION INDIANS
OrganizationSANTA YNEZ, CA
$2,000
Jun 26, 2023
9
SANTA YNEZ BAND OF MISSION INDIANS
OrganizationSANTA YNEZ, CA
$2,000
Oct 10, 2024
10
SALT RIVER PIMA MARICOPA INDIAN COMMUNITY
OrganizationSCOTTSDALE, AZ
$1,000
Mar 29, 2023

Rep. Sánchez, Linda T. [D-CA-38]

ID: S001156

Top Contributors

10

1
PECHANGA BAND OF INDIANS
OrganizationTEMECULA, CA
$3,300
Oct 23, 2023
2
FEDERATED INDIANS OF GRATON RACHERIA
OrganizationROHNERT PARK, CA
$3,300
Jun 29, 2023
3
FEDERATED INDIANS OF GRATON RACHERIA
OrganizationROHNERT PARK, CA
$3,300
Jun 29, 2023
4
HABEMATOTEL POMO OF UPPER LAKE
OrganizationUPPER LAKE, CA
$3,300
Apr 8, 2024
5
THE CHICKASAW NATION
OrganizationADA, OK
$1,000
Nov 9, 2023
6
SANTA YNEZ BAND OF MISSION INDIANS
OrganizationSANTA YNEZ, CA
$1,000
Jun 29, 2023
7
MORONGO BAND OF MISSION INDIANS
OrganizationBANNING, CA
$1,000
Jun 28, 2024
8
MOHEGAN TRIBE OF INDIANS OF CONNECTICUT
OrganizationUNCASVILLE, CT
$1,000
Jun 29, 2024
9
MORONGO BAND OF MISSION INDIANS
OrganizationBANNING, CA
$1,000
Sep 14, 2023
10
SALT RIVER PIMA MARICOPA INDIAN COMMUNITY
OrganizationSCOTTSDALE, AZ
$1,000
Sep 18, 2023

Rep. LaHood, Darin [R-IL-16]

ID: L000585

Top Contributors

10

1
MORONGO BAND OF MISSION INDIANS
OrganizationBANNING, CA
$3,300
Mar 30, 2023
2
MORONGO BAND OF MISSION INDIANS
OrganizationBANNING, CA
$3,300
Jun 14, 2024
3
SHAKOPEE MDEWAKANTON SIOUX COMMUNITY
OrganizationPRIOR LAKE, MN
$1,650
May 15, 2024
4
SHAKOPEE MDEWAKANTON SIOUX COMMUNITY
OrganizationPRIOR LAKE, MN
$1,650
Jun 16, 2023
5
SANTA YNEZ BAND OF MISSION INDIANS
OrganizationSANTA YNEZ, CA
$1,300
Oct 28, 2024
6
BARONA BAND OF MISSION INDIANS
OrganizationLAKESIDE, CA
$1,000
Feb 8, 2023
7
ONEIDA NATION
OrganizationONEIDA, WI
$1,000
Mar 30, 2023
8
SALT RIVER PIMA MARICOPA INDIAN COMMUNITY
OrganizationSCOTTSDALE, AZ
$1,000
Mar 31, 2023
9
D CONSTRUCTION, INC.
OrganizationCOAL CITY, IL
$1,000
Mar 29, 2024
10
ONEIDA NATION
OrganizationONEIDA, WI
$1,000
Jun 30, 2024

Rep. Sewell, Terri A. [D-AL-7]

ID: S001185

Top Contributors

10

1
BUFFALO ROCK COMPANY
OrganizationBIRMINGHAM, AL
$5,000
Oct 15, 2024
2
POARCH BAND OF CREEK INDIANS
OrganizationATMORE, AL
$3,300
Mar 26, 2024
3
POARCH BAND OF CREEK INDIANS
OrganizationATMORE, AL
$3,300
Sep 21, 2023
4
BUFFALO ROCK COMPANY
OrganizationBIRMINGHAM, AL
$2,500
Sep 10, 2024
5
BUFFALO ROCK COMPANY
OrganizationBIRMINGHAM, AL
$2,500
Sep 30, 2024
6
LAW OFFICES OF FREDERICK GRAEFE LLC
OrganizationWASHINGTON, DC
$500
Sep 30, 2023
7
CHIROPRACTIC CARE INC.
OrganizationGULF SHORES, AL
$250
Feb 26, 2024
8
BROWN, CANDACE P.
NONE • RETIRED
IndividualFLORENCE, SC
$4,500
Sep 6, 2024
9
BROWN, JAMES A.
SMS COMPANY • VICE PRESIDENT
IndividualFLORENCE, SC
$4,500
Sep 6, 2024
10
LEHMAN, WILLIAM
NOT EMPLOYED • NOT EMPLOYED
IndividualAVENTURA, FL
$3,300
Dec 9, 2024

Rep. Estes, Ron [R-KS-4]

ID: E000298

Top Contributors

10

1
MORONGO BAND OF MISSION INDIANS TRIBAL OPERATIONS ACCOUNT
OrganizationBANNING, CA
$2,300
Feb 27, 2024
2
SANTA YNEZ BAND OF MISSION INDIANS
OrganizationSANTA YNEZ, CA
$1,500
Mar 15, 2024
3
SANTA YNEZ BAND OF MISSION INDIANS
OrganizationSANTA YNEZ, CA
$1,000
Jun 30, 2023
4
MORONGO BAND OF MISSION INDIANS TRIBAL OPERATIONS ACCOUNT
OrganizationBANNING, CA
$1,000
Mar 31, 2023
5
WILLIS, THOMAS
CONESTOGA ENERGY PARTNERS • CEO
IndividualLIBERAL, KS
$3,300
Nov 4, 2024
6
KLAUSMEYER, DON
KLAUSMEYER CONSTRUCTION • OWNER
IndividualCLEARWATER, KS
$3,300
Jul 31, 2023
7
LEE, JAMES
LEE AEROSPACE INC. • OWNER
IndividualWICHITA, KS
$3,300
Sep 30, 2023
8
BEREN, ADAM
BEREXCO • CEO AND PRESIDENT
IndividualWICHITA, KS
$3,300
Sep 29, 2023
9
BEREN, ADAM
BEREXCO • CEO AND PRESIDENT
IndividualWICHITA, KS
$3,300
Sep 29, 2023
10
CHOUAKE, ESTHER
SELF • PHYSICAN
IndividualENGLEWOOD, NJ
$3,300
Dec 16, 2023

Donor Network - Rep. Smith, Jason [R-MO-8]

PACs
Organizations
Individuals
Politicians

Hub layout: Politicians in center, donors arranged by type in rings around them.

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Showing 61 nodes and 36 connections (39 secondary connections hidden)

Total contributions: $919,505

Top Donors - Rep. Smith, Jason [R-MO-8]

Showing top 18 donors by contribution amount

1 Org17 Individuals

Industry Impact

Which industries are materially affected by specific provisions in this bill. 3 helped.

  • +Commercial Banksconfidence 0.80

    Section 894A provides special rules for taxation of certain residents of Taiwan, which may reduce tax liabilities for Taiwanese banks operating in the US, thereby benefiting commercial banks.

  • +Real Estateconfidence 0.80

    Section 894A(c)(2)(C) mentions real estate investment trusts, indicating a potential benefit for the real estate industry.

  • The bill's provisions may attract more investment from Taiwanese private equity and hedge funds, as they can take advantage of the reduced tax rates and special rules outlined in Section 894A.

Who funds the sponsor on these industries

For each industry this bill affects, here's what the sponsor (Rep. Smith, Jason [R-MO-8])received from donors associated with that industry during the 2022–present cycles. Donations are not proof of intent — they are a record of who funds the people writing the law.

Industries this bill HELPS

  • from 34 contributions
    • ROWAN, MARC J$9,900
    • GRIFFIN, KENNETH$9,900
    • SINGER, PAUL$9,900
    • LEAS, BRET$8,300
    • KLEINMAN, SCOTT$8,300
  • from 2 contributions
    • SCHALL, MICHAEL$2,500
    • PARRELL, MARK$1,000
  • from 1 contribution
    • DAY, BRANDON$1,000

Project 2025 Policy Matches

This bill shows semantic similarity to the following sections of the Project 2025 policy document.AI-enhanced analysis provides detailed alignment ratings.

Department of the Treasury

Strong
Vector: 60%
Pages: 745-747AI Enhanced

AI Analysis:

"The bill’s focus on reducing double taxation for cross‑border income aligns with Project 2025’s tax reform goals, particularly the emphasis on eliminating double taxation of corporate income and promoting pro‑growth tax policies that lower withholding rates and encourage foreign investment."

Key themes:double taxation eliminationtax reformwithholding tax reductionforeign‑source incometax competition

— 712 — Mandate for Leadership: The Conservative Promise 17. For a detailed discussion, see David R. Burton, “Tax Reform: Eliminating the Double Taxation of Corporate Income,” Heritage Foundation Backgrounder No. 3216, May 18, 2017, https://www.heritage.org/sites/default/ files/2017-05/BG3216.pdf. 18. One hundred dollars in corporate income less an 18 percent tax leaves $82. A 15 percent capital gains tax or qualified dividends tax is $12.30, which leaves $69.70, for an effective marginal tax rate of 30 percent. This, of course, abstracts away from certain timing issues. 19. Inflation Reduction Act, Public Law 117–169. 20. Ibid. 21. Tax Cuts and Jobs Act, Public Law 115–97, § 11061, amending Internal Revenue Code § 2010(c). The amounts before inflation adjustments are $5 million and $10 million, respectively. See also Internal Revenue Service, “What’s New: Estate and Gift Tax, Basic Exclusion Amount for Year of Death,” https://www.irs.gov/businesses/ small-businesses-self-employed/whats-new-estate-and-gift-tax (accessed March 22, 2023). 22. The effective tax rate on foreign-derived intangible income should remain equal to the tax rate on global intangible low-taxed income. 23. For miscellaneous itemized deductions, see Internal Revenue Code (26 U.S. Code § 67). Business deductions that were suspended by the 2017 tax bill (other than those related to depreciation) should also be extended. This includes the local lodging expense deduction and entertainment expense deductions. The 2017 tax bill’s modifications to the deduction for personal casualty and theft losses should be made permanent. The Pease limitation on itemized deductions should be permanently eliminated. 24. Bonus depreciation provisions applied to specific industries should be maintained. 25. Employer-provided childcare expenses should also count toward the limitation on benefit deductions. 26. HSAs are flexible and portable, and they help contain costs by giving health care consumers skin in the game. 27. For additional revenue to fund pro-growth tax cuts, lawmakers could gradually phase down the limitation on benefit deductions. 28. Early versions of the 2017 tax bill envisioned reforming the corporate income tax into a destination-based cash flow tax, a form of consumption tax. A tax system that taxes labor and capital-factor incomes equally— and only once—results in higher output and higher incomes. Usually, in the modern public finance literature, this is called a consumption tax. On the economic superiority of consumptions taxes, see N. Gregory Mankiw et al., “Optimal Taxation in Theory and Practice,” Journal of Economic Perspectives, Vol. 23, No. 4 (2009), pp. 147–174, https://pubs.aeaweb.org/doi/pdfplus/10.1257/jep.23.4.147 (accessed March 19, 2023); Alan J. Auerbach, “The Choice Between Income and Consumption Taxes: A Primer,” NBER Working Paper No. 12307, June 2006, https://www.nber.org/system/files/working_papers/w12307/w12307.pdf (accessed March 19, 2023); and Charles E. Walker and Mark A. Bloom eld, eds., The Consumption Tax: A Better Alternative? (Cambridge, MA: Harper and Row, Ballinger, 1987). 29. Hoover Institution, “Simplifying the Tax System: The History of the Flat Tax,” March 1, 2019, https://www. hoover.org/research/simplifying-tax-system-history-flat-tax (accessed March 20, 2023). 30. David R. Burton, “Four Conservative Tax Plans with Equivalent Economic Results,” Heritage Foundation Backgrounder No. 2978, December 7, 2022, https://www.heritage.org/taxes/report/four-conservative-tax- plans-equivalent-economic-results. Consumption tax plans generally include carveouts that exempt very low-income Americans from federal tax liability. 31. Daniel J. Mitchell and Chris Edwards, Global Tax Revolution: The Rise of Tax Competition and the Battle to Defend It (Washington, DC: Cato Institute, 2008); Preston Brashers, “Like Constitutional Checks and Balances, Tax Competition Is a Bulwark Against Growth of Government,” March 17, 2022, https://www.heritage.org/ taxes/commentary/constitutional-checks-and-balances-tax-competition-bulwark-against-growth (accessed March 19, 2023). 32. James M. Robers et al., “Organization for Economic Co-operation and Development (OECD): What America Should Do,” Heritage Foundation Backgrounder No. 3593, March 16, 2021, https://www.heritage.org/ sites/default/files/2021-03/BG3593.pdf; Preston Brashers. “The OECD Crusade To Raise Taxes,” Heritage Foundation Commentary, February 4, 2022, https://www.heritage.org/taxes/commentary/the-oecd-crusade- raise-taxes; David Burton, “How the OECD is Promoting More Identity Theft, Crime, Industrial Espionage, and Suppression of Political Dissidents,” July 15, 2016, Heritage Foundation Commentary, https://www.heritage. org/taxes/commentary/how-the-oecd-promoting-more-identity-theft-crime-industrial-espionage-and;

Trade

Moderate
Vector: 61%
Pages: 813-815AI Enhanced

AI Analysis:

"The bill seeks to reduce tax barriers and promote economic cooperation between the U.S. and Taiwan, which aligns with Project 2025's trade objectives of leveling the playing field, reducing unfair trade imbalances, and encouraging reciprocal economic relations, though it focuses on tax rather than tariff measures."

Key themes:US-Taiwan economic cooperationReduction of trade/investment barriersPromotion of fair reciprocal tradeAddressing double taxation

— 781 — Trade 5 ELBAT )8 fo 8 egaP( noisserggA cimonocE fo seirogetaC s’anihC tsinummoC erutpaC gnigremE hceT-hgiH taht seirtsudnI erutuF evirD yeK eriuqcA dna eruceS tcetorP dna htworG seigolonhceT etanimoD lortnoC emoH s'anihC stnemecnavdA morf PI dna lanoitidarT larutaN eroC s’anihC dnapxE morf tekraM ,seiciloP ,stcA s'anihC esnefeD ni seirtnuoC rehtO gnirutcafunaM secruoseR labolG fo erahS noititepmoC fo secitcarP dna yrtsudnI .S.U eht dna seirtsudnI yllabolG stekraM stropmI dna noisserggA cimonocE ,gnikeeS-ygolonhceT % % % ngieroF detceriD-etatS tnemtsevnI tceriD % % % tfarcypS lanoitidarT gnipmuditnA edavE ot pihssnarT % seituD gniliavretnuoC dna stnemtsujdA xaT deddA-eulaV % % ezidisbuS setabeR dna stropxE esenihC decrofnE ylxaL dna kaeW % % swaL latnemnorivnE seigolonhceT eht snetaerhT noisserggA cimonocE s’anihC woH ,yciloP gnirutcafunaM dna edarT fo ecffi O esuoH etihW :ECRUOS /tnetnoc-pw/vog.sevihcra.esuohetihwpmurt//:sptth ,8102 enuJ ,dlroW eht dna setatS detinU eht fo ytreporP lautcelletnI dna gro.egatireh A .)3202 ,12 hcraM dessecca( fdp.FDP-81.81.6-tropeR-ygolonhceT-anihC-LANIF/60/8102/sdaolpu — 782 — Mandate for Leadership: The Conservative Promise reduction in the U.S. bilateral trade deficit with India. Similarly, if Taiwan were to reduce its tariffs to U.S. levels, the size of the U.S. bilateral trade deficit with Taiwan would fall by 6 percent. If the U.S. imposed a mirror tariff, its bilateral trade deficit with Taiwan would fall by 59 percent. These results again underscore the high degree of unfair, unbalanced, and nonreciprocal trade that currently exists between the U.S. and much of the rest of the world, which penalizes American farmers, ranchers, manufacturers, and workers because of the WTO-MFN conundrum. These simulations also demon- strate that implementation of the USRTA most likely would substantially reduce the U.S. trade deficit while creating hundreds of thousands of new jobs. These benefits notwithstanding, however, the U.S. would still face a substantial over- all trade deficit and substantial bilateral trade deficits with many of its major trading partners. Why might this be so? Because under WTO rules, America still faces numerous nonreciprocal nontariff barriers around the world. For example, one of America’s largest trading partners, Japan, runs a significant bilateral trade surplus in goods with the U.S.—more than $70 billion a year. While Japan has relatively low tariffs, it ranks high on the nontariff barrier scale. In such cases, which are numerous, pas- sage of the USRTA would likely also be very helpful in reducing nontariff barriers. This is because under the powers provided by the USRTA, if a foreign country imposes significantly higher nontariff barriers, then the President has the authority to “negotiate and seek to enter into an agreement” that “commits the country to… eliminate [its] nontariff barriers.”16 If the country refuses to come to the negoti- ating table and lower its nontariff barriers, the President has the authority to levy reciprocal duties to offset or mirror those barriers. In summary, passage of the USRTA would go a long way toward leveling the playing field for American farmers, ranchers, manufacturers, and workers who are now forced to compete in an intrinsically unfair, unbalanced, and nonreciprocal WTO-MFN system. Nor is the USRTA necessarily the only possible legislative way to address this issue. In 2017, then-House Speaker Paul Ryan (R–WI) and then-House Ways and Means Committee Chairman Kevin Brady (R–TX) proposed a “border adjust- ment tax.” The proposed border adjustment would have eliminated the ability of corporations to deduct the cost of imports while eliminating the tax on income attributable to exports. This border adjustment tax would have shifted the U.S. corporate income tax from an origin-based tax applying to the production of goods and services in the United States to a destination-based tax applying to the con- sumption of goods and services in the U.S. This tax—strongly opposed by American multinational corporations and big- box retailers—not only would have leveled the playing field with respect to WTO rules, but also would have provided an innovative alternative to the application of

Department of the Treasury

Moderate
Vector: 60%
Pages: 745-747AI Enhanced

AI Analysis:

"The bill's focus on reducing double taxation and modifying tax rules for cross-border income aligns with Project 2025's broader tax reform goals, particularly those concerning international tax competition and reducing burdens on foreign investment, though it does not directly implement specific proposals like consumption tax shifts or OECD opposition."

Key themes:tax reformdouble taxationinternational tax policyforeign investmenttax competition

— 712 — Mandate for Leadership: The Conservative Promise 17. For a detailed discussion, see David R. Burton, “Tax Reform: Eliminating the Double Taxation of Corporate Income,” Heritage Foundation Backgrounder No. 3216, May 18, 2017, https://www.heritage.org/sites/default/ files/2017-05/BG3216.pdf. 18. One hundred dollars in corporate income less an 18 percent tax leaves $82. A 15 percent capital gains tax or qualified dividends tax is $12.30, which leaves $69.70, for an effective marginal tax rate of 30 percent. This, of course, abstracts away from certain timing issues. 19. Inflation Reduction Act, Public Law 117–169. 20. Ibid. 21. Tax Cuts and Jobs Act, Public Law 115–97, § 11061, amending Internal Revenue Code § 2010(c). The amounts before inflation adjustments are $5 million and $10 million, respectively. See also Internal Revenue Service, “What’s New: Estate and Gift Tax, Basic Exclusion Amount for Year of Death,” https://www.irs.gov/businesses/ small-businesses-self-employed/whats-new-estate-and-gift-tax (accessed March 22, 2023). 22. The effective tax rate on foreign-derived intangible income should remain equal to the tax rate on global intangible low-taxed income. 23. For miscellaneous itemized deductions, see Internal Revenue Code (26 U.S. Code § 67). Business deductions that were suspended by the 2017 tax bill (other than those related to depreciation) should also be extended. This includes the local lodging expense deduction and entertainment expense deductions. The 2017 tax bill’s modifications to the deduction for personal casualty and theft losses should be made permanent. The Pease limitation on itemized deductions should be permanently eliminated. 24. Bonus depreciation provisions applied to specific industries should be maintained. 25. Employer-provided childcare expenses should also count toward the limitation on benefit deductions. 26. HSAs are flexible and portable, and they help contain costs by giving health care consumers skin in the game. 27. For additional revenue to fund pro-growth tax cuts, lawmakers could gradually phase down the limitation on benefit deductions. 28. Early versions of the 2017 tax bill envisioned reforming the corporate income tax into a destination-based cash flow tax, a form of consumption tax. A tax system that taxes labor and capital-factor incomes equally— and only once—results in higher output and higher incomes. Usually, in the modern public finance literature, this is called a consumption tax. On the economic superiority of consumptions taxes, see N. Gregory Mankiw et al., “Optimal Taxation in Theory and Practice,” Journal of Economic Perspectives, Vol. 23, No. 4 (2009), pp. 147–174, https://pubs.aeaweb.org/doi/pdfplus/10.1257/jep.23.4.147 (accessed March 19, 2023); Alan J. Auerbach, “The Choice Between Income and Consumption Taxes: A Primer,” NBER Working Paper No. 12307, June 2006, https://www.nber.org/system/files/working_papers/w12307/w12307.pdf (accessed March 19, 2023); and Charles E. Walker and Mark A. Bloom eld, eds., The Consumption Tax: A Better Alternative? (Cambridge, MA: Harper and Row, Ballinger, 1987). 29. Hoover Institution, “Simplifying the Tax System: The History of the Flat Tax,” March 1, 2019, https://www. hoover.org/research/simplifying-tax-system-history-flat-tax (accessed March 20, 2023). 30. David R. Burton, “Four Conservative Tax Plans with Equivalent Economic Results,” Heritage Foundation Backgrounder No. 2978, December 7, 2022, https://www.heritage.org/taxes/report/four-conservative-tax- plans-equivalent-economic-results. Consumption tax plans generally include carveouts that exempt very low-income Americans from federal tax liability. 31. Daniel J. Mitchell and Chris Edwards, Global Tax Revolution: The Rise of Tax Competition and the Battle to Defend It (Washington, DC: Cato Institute, 2008); Preston Brashers, “Like Constitutional Checks and Balances, Tax Competition Is a Bulwark Against Growth of Government,” March 17, 2022, https://www.heritage.org/ taxes/commentary/constitutional-checks-and-balances-tax-competition-bulwark-against-growth (accessed March 19, 2023). 32. James M. Robers et al., “Organization for Economic Co-operation and Development (OECD): What America Should Do,” Heritage Foundation Backgrounder No. 3593, March 16, 2021, https://www.heritage.org/ sites/default/files/2021-03/BG3593.pdf; Preston Brashers. “The OECD Crusade To Raise Taxes,” Heritage Foundation Commentary, February 4, 2022, https://www.heritage.org/taxes/commentary/the-oecd-crusade- raise-taxes; David Burton, “How the OECD is Promoting More Identity Theft, Crime, Industrial Espionage, and Suppression of Political Dissidents,” July 15, 2016, Heritage Foundation Commentary, https://www.heritage. org/taxes/commentary/how-the-oecd-promoting-more-identity-theft-crime-industrial-espionage-and; — 713 — Department of the Treasury David R. Burton “Towards a Global Tax Cartel?” Policy, Vol. 18, No. 4 (Summer 2002–2003), Center for Independent Studies (Australia), https://www.cis.org.au/wp-content/uploads/2015/04/images/stories/policy- magazine/2002-summer/2002-18-4-david-r-burton.pdf (accessed March 19, 2023). 33. Roberts et al., “Organization for Economic Co-operation and Development (OECD).” 34. See Inflation Reduction Act, § 10301. See also Preston Brashers, “IRS and Allies Downplay 87,000-Person Hiring Binge,” The Daily Signal, August 12, 2022, https://www.dailysignal.com/2022/08/12/the-irs-and-its- allies-downplay-87000-person-hiring-binge/ (accessed March 19, 2023). 35. U.S. Department of the Treasury, General Explanations of the Administration’s Fiscal Year 2022 Revenue Proposals, May 2021, pp. 88–89, https://home.treasury.gov/system/files/131/General-Explanations-FY2022.pdf (accessed March 19. 2023). 36. See U.S. Department of the Treasury, Fiscal Year 2022–2026 Strategic Plan. 37. U.S. House of Representatives, Committee on Oversight and Reform, Policy and Supporting Positions, December 2020 (the “plumb book”), p. 127 https://www.govinfo.gov/content/pkg/GPO-PLUMBOOK-2020/ pdf/GPO-PLUMBOOK-2020.pdf (accessed March 19, 2023). 38. Internal Revenue Service, “Organization and Top Officials,” https://www.irs.gov/pub/newsroom/marketing/ internet/irs-organization-chart.pdf (accessed March 19, 2023). See also Internal Revenue Code (26 U.S. Code § 7803(a)–(b)). 39. For a summary of various GAO reports on various IRS IT problems, see Vijay A. D’Souza, “Information Technology: IRS Needs to Address Operational Challenges and Opportunities to Improve Management,” testimony before the Subcommittee on Government Operations, Committee on Oversight and Reform, U.S. House of Representatives, October 7, 2020, GAO–21–178T, https://www.gao.gov/assets/gao-21-178t. pdf (accessed March 19, 2023). Charles O. Rossotti was named IRS Commissioner by President Bill Clinton primarily so that Rossotti could address widely acknowledged IT issues. He made some improvements between 1997 and 2002, but despite large investments, he did not really resolve the IT problems at the IRS. Since that time, the problems have worsened. 40. D’Souza, “Information Technology,” figure 1, p. 5. 41. Internal Revenue Service, IRS Integrated Modernization Business Plan, April 2019, https://www.irs.gov/pub/ irs-pdf/p5336.pdf (accessed March 20, 2023). 42. See, for example, the Omnibus Taxpayers’ Bill of Rights, Public Law 100–647, Subtitle J of Title VI of the Technical and Miscellaneous Revenue Act of 1988; Taxpayer Bill of Rights 2, Public Law 104–168; IRS Restructuring and Reform Act of 1998, Public Law 105–206, Title III; Consolidated Appropriations Act, Public Law 114–113, Title IV, Subtitle A (adding Internal Revenue Code § 7803(a)(3) and other changes); and Taxpayer First Act, Public Law 116–25, Title I. 43. For a list of 68 proposed reforms, see National Taxpayer Advocate, 2022 Purple Book: Compilation of Legislative Recommendations to Strengthen Taxpayer Rights and Improve Tax Administration, December 31, 2021, https://www.taxpayeradvocate.irs.gov/wp-content/uploads/2022/01/ARC21_PurpleBook.pdf (accessed March 19, 2023). Most, though not all, of these proposals have merit. Regarding penalty reform, see Jeremiah Coder, “Achieving Meaningful Civil Tax Penalty Reform and Making It Stick,” Akron Tax Journal, Vol. 27 (2012), https://ideaexchange.uakron.edu/cgi/viewcontent.cgi?article=1153&context=akrontaxjournal (accessed March 19, 2023). 44. Internal Revenue Service, 2023 Congressional Budget Justification & Annual Performance Report and Plan, Rev. 3–2022, https://home.treasury.gov/system/files/266/Internal-Revenue-Service-FY-2023-CJ.pdf (accessed March 19, 2023). 45. Internal Revenue Service, 2021 IRS Data Book: October 1, 2020 to September 30, 2021, table 11, p. 26, https:// www.irs.gov/pub/irs-pdf/p55b.pdf (accessed March 19, 2023). 46. Ibid., 2021 IRS Data Book, table 2, p. 4. 47. Scott A. Hodge, “The Compliance Costs of IRS Regulations, Tax Foundation Fiscal Fact No. 512, June 2016 https://files.taxfoundation.org/legacy/docs/TaxFoundation_FF512.pdf (accessed March 19, 2023). 48. Organization for Economic Cooperation, The Multilateral Convention on Mutual Administrative Assistance in Tax Matters: Amended by the 2010 Protocol, https://read.oecd-ilibrary.org/taxation/the-multilateral- convention-on-mutual-administrative-assistance-in-tax-matters_9789264115606-en#page1 (accessed March 20, 2023).

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About These Correlations

Policy matches are calculated using a hybrid approach: initial candidates are found using semantic similarity between bill summaries and Project 2025 policy text, then an AI model (Llama 3.1 70B) provides detailed alignment ratings and analysis. Ratings range from 1 (minimal alignment) to 5 (very strong alignment). This analysis does not imply direct causation or intent.

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