Democrats Abroad has published a submission in response to the Senate "Closing the Tax Gap: Lost Revenue from Non-Compliance and the Role of Offshore Tax Evasion" hearing. Our submission references our research on the taxation of Americans abroad, includes comments from Americans abroad who contributed to our research and outlines the reform recommendations for the American Jobs Plan/Made in America Tax Plan that would restructure tax enforcement to focus on bad actors and not ordinary, law-abiding Americans abroad. Click here to download our submission. Supporters of Tax reform for Americans abroad are encouraged to submit their own statement. Information is here. Submissions are due by Tuesday May 25th.
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On Tuesday May 11th the Senate Finance Committee Subcommittee on Taxation and IRS Oversight conducted a hearing entitled, "Closing the Tax Gap: Lost Revenue from Non-Compliance and the Role of Offshore Tax Evasion." Testimony examined on the gap between taxes owed and taxes paid, with focus on the make up of the gap (corporate tax avoidance and high earners whose income predominantly from wealth is sometimes hidden offshore) and mechanisms to shrink the gap.
As noted in our submission, Americans react with great concern when they hear Congress talking about strengthening international tax enforcement provisions. Our submission highlights the many ways that measures to foil the efforts of tax evaders and other financial criminals penalize millions of ordinary, law-abiding Americans abroad in extraordinary ways. Because of FATCA -
- We are denied financial products and services in the places where we live
- Our relationships with non-US spouses come under strain
- Some are removed from joint accounts in the places where we live
- Some are denied employment, promotions and business partnerships.
Our submission includes a great many quotes from Americans living around the world, voting in a range of U.S. states, who have contributed to our research over the years (2014, 2017 and 2019) with comments about their experience with the unintended adverse consequences of FATCA.
Our submission goes on to make a range of reform recommendations that will provide much-needed relief to Americans abroad without weakening tax enforcement.
We have meetings with Congress organised next week, with more coming thereafter, to discuss our recommendations and getting them into law.
Democrats Abroad urges you to read our submission and share it with those who have an interest in this important matter.
The Subcommittee welcomes statements for the hearing record and we urge anyone concerned with how the Congress will address tax enforcement to close the tax gap to submit their own Statement for the Record. Information about how to submit a statement is here. Submissions are due within 2 weeks of the hearing, which is Tuesday 25 May 2021.
DEMOCRATS ABROAD TAXATION TASK FORCE