Senate Finance Committee Says Time to “Rethink” Tax Rules for Americans Overseas

[Markinsa]

This was published in December 2014. 

 

Senate Finance Committee Says Time to “Rethink” Tax Rules for Americans Overseas

Cites ACA’s Residence Based Taxation Proposal as Part of Comprehensive Tax Reform for 2015

 

Washington, D.C. – (December 19, 2014)

 

In a new policy paper, Republican staff of the Senate Finance Committee have proposed major changes to the way the United States taxes its citizens overseas. According to the report, “The United States needs to rethink its taxing rules for nonresident U.S. citizens.”

 

Citing a proposal developed by American Citizens Abroad, Inc. (ACA, Inc.) to create a Residence Based Taxation (RBT) system – the same system which is currently proposed for U.S. corporations – committee staff added, “we think it makes sense to tax the individual, as a general rule, only on income from U.S. sources.”

 

This common sense approach is a marked shift from today’s uncompetitive and discriminatory tax practices whereby American workers overseas are sometimes taxed twice on the same income in addition to facing onerous penalty fees for errors, omissions and other discrepancies even if no taxes are owed.

 

“We are thrilled to see members of the Senate Finance Committee joining the growing chorus of supporters for Residence Based Taxation,” said ACA’s Tax Team Director, Jackie Bugnion. “As an organization ACA remains committed to working on a bi-partisan basis with members of both parties to get these proposals passed in 2015.”

 

ACA’s proposal entitled, “Residence Based Taxation: A Necessary and Urgent Tax Reform” provides an in-depth analysis of why the United States must change tax practices with respect to overseas workers in order to remain competitive internationally and avoid another economic downturn. (To access the report: https://americansabroad.org/files/6513/6370/3681/finalsubrbtmarch2013.pdf)

 

“Getting this proposal into the Senate Finance Committee’s report is another example of ACA’s growing influence in Washington,” said ACA Executive Director Marylouise Serrato. “Passing RBT in the next Congress is a win-win for Americans living overseas and our economy back home.” For more information on the Senate Finance Committee’s report and the ACA tax proposal, please contact:

 

Marylouise Serrato at [email protected]<script cf-hash='f9e31' type="text/javascript"> /* */</script> or 202 322 8441.

[haymon]

THANKS

[10 YEARS LATER]

Scrap FATCA for openers, thanks.

[vietnam1969]

Thanks Mark --- that was a good post.