Now is the time for tax reform for Americans overseas. Help ACA make this happen by donating to our efforts for Residence-based Taxation TODAY.
As you know ACA has been working on tax reform for American expats for more than a decade. We are facing now a one in ten-year opportunity!
If you’re like many Americans abroad, for too long you’ve been greatly burdened by the cost, complexity and stress of filing tax forms with both the IRS and your local tax authority. Hiring an expat tax preparer to do it for you can cost hundreds or even thousands of dollars. As you likely know, no other developed nation places this obligation on its expat citizens, and it puts Americans and American businesses at a disadvantage. It hurts individuals and families.
But things could really change for us this year. A major tax bill is coming! An exemption from U.S. taxation for Americans abroad can be in it. ACA has hired a top-flight lobbying firm to get Residence-based Taxation (RBT) into the 2025 tax bill. But D.C. lobbyists don’t come cheap. Americans abroad and American businesses need this reform. If you are one of them, please help make it happen by giving to American Citizens Abroad today. Read on for details or click here to give.
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Here’s the state of play.
Trump made an election pledge to “end double taxation of overseas Americans.” We know he loves saying “Promises made, promises kept” - we are taking him at his word.
In line with that pledge, a bill was introduced last December by Republican Congressman Darin LaHood that would change the U.S. tax code from the current system of citizenship-based taxation to a system of Residence-based Taxation. No more tax on non-U.S. income for Americans abroad who choose it.
ACA believes this bill to be effective for ending double taxation of Americans abroad who elect it, is cost-neutral to the U.S. federal budget, and safeguards against abuse by bad actors. A cost-neutral bill will fit effortlessly into the “big, beautiful bill” currently being written to renew the 2017 Trump tax cuts which expire this year.
These factors make the 2025 tax bill a once-in-a-generation opportunity for Congress to enact Residence-based Taxation. The 2017 Trump tax bill established Residence-based Taxation for U.S. corporations - but not for individuals. A range of opinions exist for why individuals were dropped from the 2017 bill, but RBT advocates have activated their supporters and engaged top-shelf lobbyists so that Residence-based Taxation for individuals is not left out of the bill this year.
ACA is at the forefront of work on this Residence-based Taxation proposal. In collaboration with others in the RBT Coalition, we fight for this reform on behalf of the Americans abroad. We have also hired a premier bipartisan government affairs firm – BGR Group – to help.
As you can well imagine, first class D.C. lobbyists do not come cheap. To carry on the fight on all fronts, ACA is asking for your support.
- Please give what you can to our lobbying effort for expat tax reform.
- Please forward this message to anyone who you think would be interested in ending the double taxation of Americans abroad.
- If you are uncomfortable reaching out to others, please send their contact details to me.
The stars have aligned, and we all have a golden opportunity for Congress to make good on Trump’s promise to us expats and end double taxation of Americans abroad. But you know how D.C. works; it won’t happen unless Americans abroad have an advocate in the room. Click here to donate to ACA’s fight for Residence-based Taxation.