Serving on the House Committee on Ways and Means, my work covers a wide range of policy issues. The longest running committee in Congress, Ways and Means derives its authority over all tax, revenue, and trade matters directly from Article I, Sections VII and VIII of the Constitution, which place jurisdiction for the origin of revenue-raising bills in the House of Representatives and the “Power To lay and collect Taxes, Duties, Imposts and Excises” before the federal legislative branch.
Like advocating for lower taxes for American families, ensuring American companies selling their products and services abroad receive fair tax treatment from our economic partners is a responsibility of the Ways and Means Committee. Furthermore, ensuring strategic allies like Taiwan look to the United States as a viable economic partner as they work to expand freedom and prosperity is vital to reducing the influence of the Chinese Communist Party in the Indo-Pacific region.
In May, I led a bipartisan group of Ways and Means colleagues in introducing a resolution calling for bilateral tax engagement with Taiwan. The United States-Taiwan Expedited Double-Tax Relief Act, which passed out of committee this week with my support, fulfills this call, preventing double-taxation on business investment between our countries. However, our economic engagement with Taiwan should go beyond this tax legislation.
Unfortunately, the Biden administration’s trade discussions with Taiwanese representatives have not included the issue of market access. If we are truly committed to standing with our allies and countering China’s influence, any negotiations in the region should include market access, the best way to reduce real barriers to trade.
The Ways and Means Committee also considered a bill this week to revoke the tax-exempt status of non-profit groups that have provided material support for terrorist organizations. While an executive order signed by President Bush in the wake of the September 11, 2001, attacks initially disrupted the ability of non-profits to fundraise for foreign terrorist organizations, organizations have circumvented this by funneling funds through newly created affiliate groups. This bill, the Ending Tax-Exempt Status for Charities Supporting Terrorism Act would give federal authorities the tools they need to pursue organizations with complex funding structures.
On a more targeted basis, this week the full House passed, with my support, the No Funds for Iranian Terrorism Act. This bill would block the president from facilitating the transfer of the $6 billion offered to Iran by the Biden administration in September 2023 in exchange for the release of imprisoned Americans.
We have much more to do going forward. The 2017 Tax Cuts and Jobs Act delivered a tax cut to 80 percent of Americans in the form of lower rates, a simpler tax code, and a larger standard deduction. This was achieved all while exceeding projected federal revenue as more jobs, higher wages, and greater business margins resulted in a stronger economy.
Unfortunately, to prop up runaway spending, under President Joe Biden Democrats have continuously sought to reach further into the everyday financial dealings of Americans. For example, Democrats’ massive March 2021 spending package drastically reduced the minimum tax reporting threshold for users of online payment services, such as Venmo and PayPal, from $20,000 and at least 200 transactions to $600 and as few as one transaction. This change allows the Internal Revenue Service (IRS) to audit Americans’ history of petty transactions like paying a neighbor who babysits or splitting a dinner check with friends.
Facing predictions this would require 28 million more Americans to file 1099-K tax forms this year, the IRS has delayed implementation for the second year in a row and is considering modifying the threshold to $5,000. While I am glad the administration has recognized how unworkable their policy is, the IRS has no real legal authority to make this change. Congress must still act to permanently protect middle and lower-class Americans from this onerous “Babysitter Tax.”
It’s clear there is a need to get back to commonsense policymaking in Washington. We cannot continue down an anti-growth path fraught with wasteful spending, inflation, and missed opportunities to strengthen our bonds with allies through trade. Americans know the importance of smart national security and economic policy and House Republicans are working to deliver it.