TAIPEI: The government should take initiatives to strengthen bilateral cooperation with the United States in the field of digital technology and advanced manufacturing after a tax cut bill was passed by the U.S. Congress, scholars urged Thursday.
Under the legislation, the federal corporate tax rate will fall from 35 percent to 21 percent and the maximum individual income tax rate from 39.6 percent to 37 percent, according to foreign wire services.
Liu Da nien, director of the Center for Regional Economic Integration under the Chung-Hua Institution for Economic Research,said the tax overhaul is expected to lure overseas American capital back to the U.S. and further help improve its domestic manufacturing environment.
Some Taiwanese businesses may shift their investment to the U.S, Liu said, citing Hon Hai’s decision to invest in Wisconsin because of the incentives offered by the state.
As Taiwan will also launch a series of tax reforms, Liu suggested the country should learn something from the U.S., deepen Taiwan-U.S.tax and trade agreements to sharpen Taiwan’s competitiveness and take the initiatives in cooperating with the U.S. in digital and advanced manufacturing industries.
