A Step Forward on the Road to Residency Based Taxation

Americans abroad who support expat tax reform have taken another step forward on the road to Residency Based Taxation (RBT).

Further to our report on the DA tax advocacy Capital Hill meetings of May 14-16, on Tuesday May 21 a group of Democrats Abroad global leaders who vote in the Virginia 8th Congressional district were scheduled to meet with Rep. Don Beyer, their member of Congress, to discuss expat tax reform (plus to a few other issues uniquely impacting Americans abroad).

Unfortunately the Congressman was called away to a briefing by Trump administration officials on the escalating tensions with Iran. But the Beyer constituents had a productive exchange with his Legislative Director and learned that the Beyer team has scheduled a meeting about RBT with the Ways and Means Committee Legislative Counsel as a forerunner to a meeting with Rep. George Holding’s team about our keynote reform.

We, in collaboration with the other organizations advocating for expat tax reform, have made the progress we were hoping for, i.e. bringing the Beyer team into active engagement with the Holding team on the development of RBT legislation. But now begins the in-the-weeds work with Beyer’s team on the Holding RBT legislative design elements. The DA Taxation Task Force, in collaboration with our colleague organizations representing Americans abroad, will continue our work with the Beyer and Holding teams on this important reform.

Next steps

As noted in our last post, we expect the Beyer and Holding teams to create, in partnership, a consensus view on draft RBT legislation, send it to the Joint Committee on Taxation to be scored and to Ways and Means Committee Legislative Counsel to be structured into a bill which we can then build support for right across both parties and both chambers. Of course, nothing related to Congressional lawmaking is as simple or as linear as that. There will be zig zags, delays and pitfalls along the way, but there are many groups advocating actively for progress on RBT and working hard to keep the process moving forward.

What can you do to progress RBT?

The best thing you can do to progress RBT is to reach out to your elected representatives to remind them of the importance of this reform to you and your family and to ask for their support. Personal stories are the most effective. Include as much detail as you feel comfortable sharing. Call, write or send electronic messages to your House member and Senators. All outreach to those counting on your electoral support is helpful. If you get a boilerplate response that scarcely relates to the message you sent, write again demanding more. If you get an interesting response that you think would be useful for us to know about in progressing our work, please end it through to us.  We will follow up with your member.

Also happening

We understand that a bill establishing a Commission on Americans Abroad and the Overseas Americans Financial Access Act, establishing an exemption from all FATCA reporting for the foreign financial accounts of Americans abroad in their countries of residence, are soon to be re-introduced in the House of Representatives. We will let you know when those bills drop and what you can do to demonstrate your support for them.

Send questions or comments to taxationtf@democratsabroad.org.

Democrats Abroad Taxation Task Force