ACA submits statement to House Ways & Means on “How Tax Reform Will Simplify Our Broken Tax Code and Help Individuals and Families.”

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In its comments, ACA urges Congress to amend the Internal Revenue Code to switch from Citizenship-Based Taxation to Residency-Based Taxation (RBT). 

 As noted in the ACA submission, the U.S. is wildly out of sync with the rest of the world in the way it taxes Americans residing outside the country. It is the only country other than war-torn and impoverished Eritrea that taxes individuals based on their citizenship. Territorial taxation is being discussed for corporations and Congress should do the same for Americans residing abroad and amend the tax rules making them taxable only on U.S. source income and income connected with the U.S. business or otherwise connected with the U.S.

Residency-based taxation for individuals has been raised in nearly every tax reform hearing held by House Ways & Means this year.  It is encouraging to see this kind of focus and Congressional support for a policy whose time has come.  See:   https://youtu.be/jpP_xJ5aojo?t=1h32m55s