Pages tagged “tax”
The US State Department is hosting an open comment period to reduce the renunciation fee from $2,350 to $450. This is a great opportunity for your voice to be heard about the tax problems forcing Americans abroad to renounce their citizenship in the first place (aka the tax compliance nightmare suffered by Americans abroad).
Here’s all you need to do:
- Go to the relevant State Department page at this link.
- Click the big green button on the right side that says “SUBMIT A FORMAL COMMENT.”
- Leave a comment! We’ll include a template below - but the more personal your comment is the better!
Comments close November 1, so be sure to submit before the deadline.
Template Messaging (But the more personal the better!)
Asking Americans to pay $450 to renounce their citizenship is still exorbitant (as compared to other consular fees that are substantially lower), but at least it’s an improvement.
But the real tragedy is that so many Americans feel like they have to cut ties in the first place. The fact that more Americans renounce their citizenship than any other nationality is deeply embarrassing - instead of penalizing them on their way out the door, the State Department should be asking why they’re leaving in the first place.
The obvious answer is the uniquely unfair tax system to which the US subjects its citizens living abroad. The State Department’s mission includes “shape[ing] an international environment in which all Americans can thrive.” Surely that involves helping guide the government toward policies that don’t massively complicate life for Americans abroad.
Instead of nickel-and-diming Americans forced to renounce their citizenship to escape double-taxation, the State Department should push Congress to bring the US into line with the entire rest of the world in the way it taxes its expats.
Thanks for your help!!
DA Global Taxation Task Force
Please share this with any friend or family member that might be interested in submitting a formal comment!
October 12, 2023
Below is a copy of the letter from Democrats Abroad submitted to the Senate Finance Committee in response to the report "Credit Suisse's Role In U.S. Tax Evasion Schemes" released on March 29, 2023.
As part of efforts to make the Democratic Party's convention the most inclusive and engaging yet, the Democratic National Convention Committee (DNCC) has launched a digital engagement campaign inviting everyone to share what ideas, values, and beliefs they want to see reflected in the 2020 Party Platform.
The main ways to participate in this campaign are by:
Democrats Abroad is working to see Residency Based Taxation (RBT) included in the 2020 Party Platform, so that it helps us gain more support in Congress to make RBT a reality.