ACA in the News: House Bill to Create Residency-Based Taxation in the Works
Tax Notes International (March 15, 2019) p. 1379, published by Tax Analysts
House Bill to Create Residency-Based Taxation in the Works
By: Jad Chamseddine
"Rep. George Holding, R-N.C., is working with the Joint Committee on Taxation and the House legislative counsel to revive the bill, which would exclude all individual foreign-source income from U.S. taxation, but not U.S.-source income, according to Matt Stross, his legal counsel. 'We are hoping to piggyback on the foreign earned income exclusion,' Stross said during a March 14 webcast organized by the American Citizens Abroad Global Foundation. Under section 911, U.S. taxpayers living abroad could exclude up to $104,100 in income from U.S. taxation as of 2018...Jonathan Lachowitz of White Lighthouse Investment Management said the bill would ensure that many Americans living abroad wouldn’t have to spend money for return preparation, because they wouldn’t owe anything. Lachowitz also said it would make it easier for multinational corporations to hire American workers. 'It is more expensive to hire U.S. citizens by about 40 percent,' he said."