Bill · S. 2646· Senate(119-S-2646)
No Tax Treaties for Foreign Aggressors Act
- Introduced
- 8/1/2025
- Last activity
- 8/1/2025 — Read twice and referred to the Committee on Foreign Relations.
- Sponsored by
- John Cornyn
- Cosponsors
- - 1 - 2
- Introduced
- In Committee
What this bill would do
This bill, known as the "No Tax Treaties for Foreign Aggressors Act," establishes a plan to end the income tax treaty between the United States and the People's Republic of China. The termination is triggered if the President determines that the People's Liberation Army has started an armed attack against Taiwan. Once notified by the President, the Secretary of the Treasury must provide written notice of the intent to terminate the convention through diplomatic channels. This notice must be sent within 30 days of the President's notification. Additionally, the President is required to notify specific Senate committees regarding this termination.
Yes
Does this raise the taxes companies pay?+5
The termination of the income tax treaty will likely result in higher tax liabilities for corporations operating across these borders.
Does this strengthen ties with allied countries?+4
The bill signals strong diplomatic support for Taiwan in response to potential military aggression.
The opposite
Would business owners be better off under this?-6
The termination of the tax treaty increases the tax burden and complexity for business owners with cross-border interests involving China.
Who it would affect, and how
Potential Positive Impacts for People
- Conditional Termination of Tax Convention: The bill provides a mechanism to terminate the United States-People's Republic of China Income Tax Convention if an armed attack occurs (Section 2, subsection a). This serves as a response to specific military actions taken by the People's Liberation Army against Taiwan.
Potential Negative Impacts for People
- Termination of Income Tax Convention: The bill mandates the termination of the United States-People's Republic of China Income Tax Convention, which was entered into force on January 1, 1987 (Section 2, subsection a). This termination is triggered by the specific condition of an armed attack against Taiwan.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Business Owners-6
- Economy And Finance
- Increases Corporate Taxes+5
- National Security And Foreign Policy
- Improves International Alliances+4
- 8/1/2025
- Read twice and referred to the Committee on Foreign Relations.
- 3 Cosponsors added.
- Introduced in Senate
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Bill CassidyRepublican · Louisiana
Christopher CoonsDemocrat · Delaware
Catherine Cortez MastoDemocrat · Nevada