Nebraska Panhandle News

U.S. Senator Pete Ricketts has introduced a legislative package aimed at countering efforts by Communist China and other adversaries to disrupt American prosperity. The package consists of four bills designed to limit the ability of these adversaries to exploit America's economic strength and tax benefits.

"Communist China is the greatest threat to the American way of life," said Ricketts. "Communist China is actively threatening a rules-based system that has maintained peace and prosperity for over 80 years. America’s markets are supposed to benefit Americans. We can’t allow our markets to fund our adversaries like Communist China."

The proposed legislation includes several acts with specific focuses:

- The No Capital Gains Allowance for Americans Adversaries Act

- The PRC Military and Human Rights Capital Markets Sanctions Act

- The No China in Index Funds Act

- The Protecting Endowments from Our Adversaries Act (PEOAA)

The background provided highlights that other countries, such as China, offer investment incentives through their tax codes but require pre-approval from their government for foreign investments. Companies with restricted or severed business relations with the United States should not be allowed to sell securities in the U.S., whether directly or indirectly.

Index mutual funds typically invest broadly across market sectors without scrutinizing individual companies closely, posing risks when investing in Chinese companies due to difficulties in evaluating these risks. This bill aims to exclude such stocks from index mutual funds.

University and college endowments often invest significant sums into organizations listed on the Department of Commerce’s Entity List, which may pose national security concerns while maintaining tax advantages.