Chairman of the House Select Committee on the Communist Party of China John Moolener (R-Mich.) and Sen. Marco Rubio (R-Fla.) are working to prevent U.S. tax laws from rewarding investments in communist China. Introduced the bicameral Patriotic Investment Act.
Many of Wall Street’s financial firms choose to invest in Communist China, and a number of companies maintain Communist China’s military, rely on slave labor, and break up U.S. business and jobs in violation of trade rules. They are pouring billions of dollars into it. This does not benefit the American people or the American economy, and it threatens America’s national security.
Nevertheless, the U.S. tax code gives these investments a reasonably low capital gains tax rate.
“For too long, Americans investing in China’s military-industrial complex have received unfair tax breaks that allow them to profit from funding their adversaries. That’s wrong, and Rubio The senators and I are introducing this bill to end this special treatment. Our tax code should encourage investment in the United States, not cooperation with the Chinese Communist Party.” the chairman said.
“Capital gains tax rates were intended to encourage investment in American innovation rather than to fund repressive communist regimes, but Wall Street continues to fund its adversaries and Enough is Enough. My Patriotic Investment Act will level the playing field and ensure that our tax code does not encourage investments that harm American businesses and workers.” Sen. Rubio said.
Specifically, the bill would facilitate divestment from Chinese securities by eliminating the beneficial capital gains tax rate on these investments. Instead, Chinese investments would be taxed at the highest income rate. This rate of increase applies only to financial profits that will occur in the future, not to profits that have already occurred. After the Patriotic Investment Act passes, businesses and individuals will have six months to spread their tax payments over three years.
