US Lawmakers Near Taiwan Tax Deal, Risking Anger From China

US lawmakers unveiled a proposal that would eliminate so-called double taxation of Taiwanese workers and firms in America, a step toward a major priority for Taipei and Washington that risks angering Beijing.

The Taiwan deal, which is part of a broader tax package announced Tuesday, would reduce withholding taxes on qualified Taiwanese residents doing business in the US, extending privileges to the island similar to those enjoyed by dozens of countries that have formal tax treaties with the US.

The legislation would also authorize the president to negotiate such an agreement with Taiwan that falls short of a ...