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Residence-based taxation (RBT Proposal) for overseas Americans is "on the table." ACA has been working for over 18 months, meeting with legislators and key offices in Washington, DC -- Senate Finance, Ways & Means, Joint Committee on Taxation. Our efforts have paid off. Residency-based taxation has been cited in two key reports. The first is the Joint Committee of Taxation report summarizing submissions sent to the Ways & Means Working Groups on Tax Reform. The ACA RBT proposal is referenced on page 521 of this submission.

The second report is one in a series of white papers by the Senate Finance Committee, this one discussing International Competitiveness. Item IV of this report cites the proposal for RBT as well as the elimination of the FEIE. FEIE can be viewed as unnecessary if Residency-based taxation is accepted. However, there are some in Congress who are still calling for elimination of FEIE only and ACA is keeping pressure to oppose such elimination as an isolated measure. ACA continues to dialogue with these offices and with legislators and we are encouraged by the fact that the RBT proposal is being reviewed and seriously considered.

Residence-based taxation (RBT) is the only way forward to keep America and Americans abroad competitive in a global economy. Get the word out on RBT by sharing this 3-minute ACA-produced video.

(updated July 2013)