Ways & Means Clears Taiwan Tax, Terror Funding, Customs Waters Bills

The Ways and Means Committee got some work done Friday in the waning days of the legislative year.

Among legislation approved were bills to revoke the tax-exempt status of charities supporting terrorist organizations, strengthen economic ties with Taiwan, and empower U.S. law enforcement in addressing illicit trade activities taking place in coastal waters.

Legislation passed by the Committee included:

United States-Taiwan Expedited Double-Tax Relief Act
Introduced by Chairman Smith (R-MO), Ranking Member Richard Neal (D-MA), and 15 bipartisan Ways and Means members, H.R. 5988 provides relief from double-taxation on cross-border investment between the United States and Taiwan, and authorizes the President to negotiate a more comprehensive U.S.-Taiwan tax agreement once the double-taxation relief provisions in the tax code are in effect.

H.R. 6408 – Ending Tax-Exempt Terrorist Financing
Introduced by Rep. David Kustoff (R-TN) and Rep. Brad Schneider (D-IL), this legislation revokes tax-exempt status for “terrorist supporting organizations,” defined as entities that have provided material support or resources to a listed terrorist organization within the past three years. Applies to any entity that has tax-exempt status, not solely public charities entitled to receive tax-deductible contributions.

Extending Limits of U.S. Customs Waters Act
Introduced by Rep. Michael Waltz (R-FL), H.R. 529 helps Customs and Border Protection fight drug smuggling and sophisticated criminal networks operating off America’s shores.   Doubles from 12 to 24 nautical miles the distance off America’s shores that Customs and Border Protection (CBP) can enforce trade laws to board and inspect vessels.   Codifies two presidential proclamations that clarify the area within which CBP officers may operate off U.S. coasts – bringing it in line with the statutory authorization already provided to the U.S. Coast Guard to operate up to 24 nautical miles.