Rep. John Moolenaar (R-Mich.) and Sen. Marco Rubio (R-Fla.) introduced a bill on Sept. 26 that would revoke preferential capital gains rates for investments tied to China.
The proposed change to the tax code is meant to dissuade American businesses and funds from supporting the Chinese Communist Party (CCP), which lawmakers and the intelligence community have increasingly warned is a national security risk in recent years.
“For too long, Americans investing in China’s military-industrial complex have been given unfair tax breaks that allow them to profit from funding our adversary,” Moolenaar stated in the announcement. “Our nation’s tax code should be incentivizing investment in the United States, not collaboration with the CCP.”…