Calls Grow to End Double Taxation for Americans Abroad | Florence Daily News
Posted by Aca Admin on May 21, 2025
Florence Daily News, May 21, 2025
Calls Grow to End Double Taxation for Americans Abroad
"American Citizens Abroad (ACA) and Americans for Tax Reform (ATR) have announced a strategic partnership to advocate for a shift from the U.S.’s citizenship-based taxation model to a residency-based taxation (RBT) system. The move is aimed at ending double taxation on U.S. citizens living and working abroad — an issue that affects an estimated 5.2 million Americans, including thousands of residents in Italy and Tuscany.
The United States is currently one of the few countries that taxes its citizens on their worldwide income, regardless of where they live. This system often results in individuals being taxed twice — once by their country of residence, and again by the U.S. — leading to complex, costly, and often unfair financial consequences. Critics argue that this outdated approach not only penalizes Americans abroad but also creates barriers for global mobility and international hiring.
The joint ACA-ATR initiative comes at a crucial time, as the U.S. Congress prepares to debate the renewal of the Tax Cuts and Jobs Act (TCJA). The two organizations are urging lawmakers to seize this legislative opportunity to implement RBT — a system used by nearly every other country — which taxes individuals based on where they live, not their passport.
Marylouise Serrato, Executive Director of ACA, emphasized the urgency of reforming the current tax system, calling it 'outdated' and 'harmful.' She stressed that the proposed RBT model could be implemented in a revenue-neutral way, with proper oversight and bipartisan support. ATR President Grover Norquist echoed the call, describing the current system as discriminatory and economically counterproductive.
The organizations hope their campaign will mobilize more support, both from lawmakers and from affected Americans overseas, including those living in Europe. Many of these individuals face not only double taxation, but also restrictions on banking, retirement accounts, and access to financial services due to U.S. tax laws.
ACA, a non-partisan nonprofit based in Washington, D.C., has long been involved in policy advocacy on behalf of Americans abroad. Its latest collaboration with ATR — a prominent U.S. tax reform group founded in 1985 — reflects growing momentum around this issue in Washington and beyond."