Stop Taxing Expats on Foreign Income, Groups Say as Senate Weighs Tax Bill | ThinkAdvisor
Posted by Aca Admin on May 28, 2025
ThinkAdvisor, May 28, 2025
Stop Taxing Expats on Foreign Income, Groups Say as Senate Weighs Tax Bill
"American Citizens Abroad, an advocacy group, is working to ensure a provision to move the U.S. to a residence-based tax system ends up in the Trump tax bill, according to Mary (sic) Serrato, the group's executive director.
In other words, Americans living abroad would only pay U.S. taxes on U.S.-sourced income.
Under the current citizenship-based system, U.S. expats must report and pay federal taxes on all income, though credits and exclusions for foreign income are available.
The House approved the tax package, known as the One Big Beautiful Bill Act, by a 215-214 vote on May 22. The bill is now being considered by the Senate.
'We continue to meet with Senate offices and receive positive feedback,' Serrato said in a statement.
ACA and Americans for Tax Reform — a group that fights tax increases and supports shrinking the government — teamed up in May to advocate for the end of double taxation on Americans living abroad. 'The goal is to replace the current citizenship-based taxation (CBT) system with residence-based taxation (RBT),' the groups said. 'The U.S. is one of only two countries in the world to use CBT, which taxes citizens on worldwide income, regardless of where they live or earn.'"