Rep. LaLota Co-sponsors Legislation to Eliminate Tax Penalties for American Hostages, Including Suffolk County’s Kai Li

WASHINGTON, D.C. - Rep Nick LaLota (Suffolk County, NY) released the following statement after signing on as co-sponsor of the Stop Tax Penalties on American Hostages Act, bipartisan legislation that eliminates tax penalties for U.S. citizens wrongfully detained or held hostage abroad. The bill also extends this relief to their spouses during the period of detention and provides retroactive reimbursement to those who have already paid such penalties after their release. 

This legislation directly benefits Americans such as Suffolk County resident and U.S. citizen Kai Lia, who was wrongfully detained by the Chinese Communist Party for eight years before his release in 2024, a cause for which LaLota consistently advocated after taking office in 2023. 

“Our duty to fight for Americans unjustly detained abroad does not end when they return home. This bill takes a critical step in addressing an ongoing injustice they may face, specifically the unfair tax burdens imposed by our own nation. No American should be financially penalized for their inability to pay taxes while wrongfully imprisoned, nor should their family,” said LaLota. “A powerful example of why this legislation is needed is Kai Li, a Huntington resident who was unjustly detained by the Chinese Communist Party for over seven years and subjected to severe human rights abuses. After enduring unimaginable hardship, the last thing Kai and his family should face is unfairly imposed back taxes and fees. I was proud to advocate for Kai’s release, and this legislation demonstrates that I will continue fighting for him—and for every American who has suffered similar injustice—to ensure they receive our continued support."

To read a full text of the legislation, click HERE.

Background:

Kai Li of Huntington, New York, was unjustly imprisoned by the Chinese Communist Party from 2016 to 2024. In 2016, Kai Li visited Shanghai to mark the first anniversary of his mother’s death. When he arrived at the airport in Shanghai, CCP authorities immediately arrested him on “state security charges.” For months, Kai was held in secret detention without access to legal counsel. Then, almost two years later in July 2018, in a one-hour secret trial, Kai was convicted of espionage.

In November 2024, the State Department announced Kai Li of Huntington would be coming home after being wrongfully detained by the Chinese government since 2016.

Since coming into office, LaLota consistently advocated for the Li family, demanding his release from China and calling on the State Department to put pressure on China. In 2023, LaLota sent a letter to President Biden calling on him to meet with the Li family. Earlier in 2024, LaLota joined several other members in a letter to Secretary Blinken highlighting the human rights abuses committed by the Chinese government, including the treatment of Kai Li.

In February 2024,  LaLota spoke on the House floor calling on the Biden Administration to bring Kai home. In March, LaLota invited Kai’s son, Harrison Li, to attend the State of the Union to bring more attention to Kai’s imprisonment. Shortly after, LaLota introduced a bill demanding the Chinese Communist Party immediately release Kai.

In June 2024, LaLota successfully included an amendment to the FY25 State and Foreign Operations Appropriations bill that supported the Special Envoy for Hostage Affairs to strengthen efforts to bring American citizens wrongfully detained in China home. In August of 2024, LaLota sent a letter to National Security Advisor Jake Sullivan urging him to prioritize Kai Li’s release in Sullivan’s discussions with Chinese officials.