The proposed Executive Order does not provide reasonable relief for Americans abroad. It does not seek simplification or elimination of taxation filing from abroad. It does not seek relief from FBAR reporting. It does not seek the elimination of double or punitive taxation of income from foreign sources. It does not seek TCJA relief for small businesses registered and headquartered abroad.
Instead, the proposed Executive Order asks for further TCJA support for companies exporting their goods abroad, and for FATCA relief for high net worth individuals living in the United States who would like to hide their income abroad.
- Simplified taxation filing for Americans abroad and an exemption from taxation filing for income they generate abroad (Residency Based Taxation);
- FATCA reforms to eliminate the foreign financial accounts of Americans living abroad from all FATCA reporting and end the banking lock out. This reform, embodied in the Overseas Americans Financial Access Act introduced by Rep Carolyn Maloney in each of the last 2 Congresses, ensures the law can still be used to charge US based Americans caught hiding untaxed income in offshore accounts, while ensuring that Americans abroad are able to bank and invest in the countries where they live;
- Relief for small businesses registered abroad from the TCJA transition taxes. Including them in the TCJA transition tax exemption will prevent the destruction of many thousands of companies owned by Americans living abroad;
- Inclusion in the Foreign Earned Income Exclusion of the income of those Americans abroad living on foreign provided social welfare, retirement, disability, unemployment, parental, etc benefits, in order to prevent double taxation.
- Furthermore, Democrats Abroad supports the Commission on Americans Living Abroad Act, introduced by Rep Carolyn Maloney in each of the last 4 Congresses and co-sponsored by Rep Don Beyer in the 116th Congress. More information here: https://www.congress.gov/bill/116th-congress/house-bill/4363
Taxation Task Force