Our Charter and Platform 2026 Kitchen Table Talks

Kitchen Table Topics - Taxation

Democrats Abroad’s Committee for Platform Planning Process Online (C3PO) wants to know what issues matter to you as a Democrat living abroad. Your input can help shape DA’s Platform. Run a Kitchen Table Talk - event in a box here - and make your voice heard! Scroll down to see optional details on this topic.  

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DISCUSSION QUESTIONS

  • Do you support Residence-Based Taxation (RBT) for Americans living abroad?
  • How do current U.S. tax filing and reporting requirements affect Americans overseas?
  • Should FATCA and FBAR reporting requirements be simplified or reformed for ordinary Americans living abroad?
  • What reforms could reduce double taxation and compliance burdens for Americans overseas?
  • How do your experiences living abroad shape your perspective on taxation, public services, and government accountability?

BACKGROUND

  • The United States is one of the only countries in the world that taxes citizens based on citizenship rather than residency, requiring many Americans abroad to file U.S. tax returns and financial reports regardless of where they live;
  • Americans living abroad may face complex filing requirements involving the IRS, FBAR reporting, FATCA reporting, foreign pensions, retirement accounts, small business ownership, and foreign financial institutions;
  • Although tools such as the Foreign Earned Income Exclusion (FEIE) and Foreign Tax Credit (FTC) may reduce double taxation, many Americans abroad still face substantial compliance costs and administrative burdens;
  • Some Americans abroad report difficulties accessing banking, investment, retirement, and financial services due to FATCA reporting requirements and related compliance concerns from financial institutions;
  • Democrats Abroad has long supported Residence-Based Taxation (RBT), which would generally tax Americans abroad based primarily on residency and U.S.-source income rather than worldwide income;
  • Recent legislative proposals and advocacy efforts have renewed discussion around Residence-Based Taxation (RBT) and tax reform for Americans abroad;
  • Americans living abroad often maintain strong economic ties to the United States through family, property ownership, businesses, retirement planning, education, investments, taxation, or part-time residency, while also contributing economically in their countries of residence;
  • Americans abroad frequently experience tax systems in other countries that differ significantly from the U.S. system, providing unique perspectives on taxation, public services, government accountability, and economic policy;

TAXATION TODAY- ADDITIONAL DISCUSSION QUESTIONS

  • Should Congress prioritize passage of Residence-Based Taxation legislation for Americans abroad?
  • What reforms should be made to FATCA and FBAR reporting requirements?
  • How should U.S. tax policy treat foreign pensions, retirement savings, and small businesses owned by Americans abroad?
  • What balance should exist between preventing tax evasion and reducing compliance burdens for ordinary Americans living overseas?
  • How can policymakers improve financial access for Americans abroad who face banking or investment restrictions?

REFERENCES