Tax writers look to move currency bill in September

The House Ways and Means Committee could move legislation combating currency manipulation when lawmakers return to Washington after the August break. 

“We’re going to have a hearing on the Chinese currency picture the first week we’re back; that we’ve settled,” Ways and Means Chairman Sandy Levin (D-Mich.) told reporters on Wednesday. “It’s about two months from now — we’ll see if there’s been a major trend in the currency value.” 

Levin expects the hearing will assess how China is addressing its currency issue and discuss potential legislative fixes for the problem. 

Earlier this month, Levin said China’s currency policy was exacerbating the economic downturn.  

“There is no real question that China’s exchange rate policy is unfair, contributes to global trade imbalances, and costs the United States jobs and economic growth, particularly in the manufacturing sector,” he said in prepared remarks on July 8. 

China was supposed to modify its exchange rate in June. A recent Treasury report showed little improvement in its rate since the modification.