Will Donald Trump really ease the tax problems of Americans in Europe? | The Local

The Local, November 22, 2024

Will Donald Trump really ease the tax problems of Americans in Europe?

"Marylouise Serrato, the executive director of American Citizens Abroad (ACA), a non-partisan, non-profit organisation that represents the legislative interests of Americans living overseas, told The Local that citizenship-based taxation has 'deep tentacles'.

'It creates a very complex filing obligation for people to undertake, which is linked to the fact that so much of the legislation that affects Americans overseas is geared toward bad actors,' she said.

This obligation and fear of making mistakes when filing has meant many Americans abroad pay more on personal tax advisors than they end up owing in US taxes.

Serrato also said the Foreign Account Tax Compliance Act (FATCA), which was intended to prevent money laundering and other financial crimes, has made it more difficult for Americans abroad to open a bank account or invest in savings plans or pensions....

'Our understanding is that [Trump's pledge] is a move away from taxing people based on citizenship, and a move towards a taxation model based on where income is earned,' Serrato, from American Citizens Abroad said.

'That has been what the community has been complaining about for many years. That has been what our organisation and other organisations on Capitol Hill have been advocating for. I cannot speak for President-Elect Trump, but we are taking the opportunity with the statement that was made...that we are advancing on residence-based taxation.'"

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