November 21, 2018

DA demands expat tax reform in the lame duck session


Democrats Abroad has written to Senator Orrin Hatch, Chairman of the Senate Finance Committee, Senator Ron Wyden, Ranking Democrat on the Senate Finance Committee, Rep Kevin Brady, Chairman of the House Ways and Means Committee and Rep Richard Neal, Ranking Democrat of the House Ways and Means Committee, asking for our transition tax reform recommendations to be included in any technical corrections bill moved in the lame duck session to remedy serious problems arising from the 2017 Tax Cuts and Jobs Act rushed through Congress in December of last year.  Click here to download the letter.

Our letter goes on to ask for their support for an urgent switch from citizenship based taxation to residency based taxation (RBT).  

We continue to monitor developments in work by Rep George Holding on RBT and to support that work by educating Congress about the need for expat tax reform and the merits of a switch from citizenship-based taxation to RBT. Our fervent hope is that Holding's year-long work will result in a bill introduced before the end of the 115th Congress. Even though the chance of the bill progressing to a vote is very slim, it will be a major milestone to have an RBT bill to work with going forward.  

The Democrats Abroad Taxation Task Force is very much looking forward, in the next year, to reaching out to the 116th Congress, so many members of which have the overseas vote to thank for their seats. We will make a special effort to engage with them and continue to persuade the all-important tax writing committees about the need for urgent action on expat tax reform.