Bloomberg Tax Daily Tax Report - Taxation of Americans Abroad


Bloomberg Tax Daily Tax Report (April 26, 2022)

Taxation of Americans Abroad

'The U.S. could adopt residence-based taxation for expats in a revenue-neutral way, according to a study released Monday by the advocacy group American Citizens Abroad.

Under the current international tax regime, U.S. citizens living abroad are subject to U.S. taxes on worldwide income. Under residence-based taxation, they would not be subject to U.S. tax on foreign income.

American Citizens Abroad, which supports residence-based taxation, said those abroad should be allowed to move between the two systems at will.

'No one would be forced to do this,' the group wrote. 'No one would be made worse off, as the existing foreign earned income exclusion rules would remain for those wishing to use them.''