ACA Executive Director publishes opinion piece on the importance of Residence-based taxation (RBT)
Posted by Aca Admin on March 02, 2026
The Hub, March 2, 2026
"This U.S. tax change could benefit millions of Americans in Canada and around the world"
"This outdated policy puts the 5 million Americans who live and work outside of the United States at a distinct disadvantage in an increasingly global job market. The double tax burden functionally makes U.S. citizens 40 percent more expensive to hire than their foreign peers. It also disincentivizes Americans abroad from owning or expanding businesses. Even though many Americans living abroad qualify for a tax credit that might offset this double taxation, merely filing the extraordinarily complex forms relevant to expats is an administrative nightmare. Navigating the convergence of two different tax systems often requires expensive professional assistance that costs thousands of dollars annually.
Citizenship-based taxation doesn’t merely harm expats, though. It harms the U.S. economy as a whole. That is, in part, because American workers based in foreign countries are naturally more familiar with potential vendors and suppliers back in the United States, compared to non-Americans. In other words, having American workers abroad means more business for American firms at home. U.S. citizens overseas are also key to securing and advancing U.S. trade and national security interests, and tax policy should help U.S. citizens in this regard. Residence-based taxation (RBT) is a strategic investment in the U.S. economy, global interests, and American citizens."