The Democrats Abroad Taxation Task Force (TTF) was formed to 1) research U.S. tax policy as it affects Americans living outside the U.S. and 2) consider, develop and execute initiatives aimed at enacting reforms that resolve adverse impacts.
Democrats Abroad has published a "laundry list" of tax code provisions that discriminate against Americans abroad. The list is here: smarturl.it/HowToFix23
We fear Congress is too divided to find remedies for each of the many and myriad tax problems we have identified. But we are determined to demand it of them.
We are committed to Residency Based Taxation as a remedy, requiring little effort by Congress, that addresses the vast majority of the tax problems faced by Americans abroad.
Further, we will continue to promote:
- the elimination of FATCA reporting for the accounts of Americans abroad,
- the repeal of the Windfall Elimination Provision,
- an exemption for American business owners abroad from the transition taxes in the 2017 Tax Cuts and Jobs Act, and
- a citizenship remedy for "accidental Americans".
We support tax reforms that help reduce inequality, boost opportunity for all Americans and raise enough revenue, predominantly from those with the greatest ability to pay, to meet public needs.
Democrats Abroad Taxation Task Force
Democrats Abroad wishes to express heartfelt condolences to the family and friends of Lucy Stensland Laederich, of the Association of Americans Resident Overseas, Paris (AARO) and the Federation of American Women's Clubs Overseas (FAWCO) and to acknowledge Lucy's profound contribution to the Americans abroad community. Lucy was a greatly respected and valued colleague of all those working to advance the interests of Americans living and working outside the U.S., especially in the area of tax reform for Americans abroad. We celebrate her life and achievements and recognize the contribution she made to our community.
Many thanks to all those who have made submissions to our 2019 Non-Resident Taxation Research Project over the two week study period. The survey was closed at midnight on Sunday February 3, 2019. We look forward to publishing a full report on the findings of the research by the end of February.
Democrats Abroad is launching our 2019 Non-Resident Taxation Research Project to generate information we will use to advocate for reforms to relieve the burden of tax, banking, financial account reporting, securities and other laws that discriminate against Americans living abroad. Please contribute to our research by filling out this questionnaire. It will be open for submissions for 2 weeks, closing at midnight US EDT on Sunday February 3, 2019.
As each year passes our list of expat tax issues grows. As followers of expat tax matters know, there was nothing good for Americans living abroad in the Tax Cuts and Jobs Act of 2017. Not only did the law fail to address any of the tax problems Americans abroad endure, it also placed a further serious - and for many existential - tax burden on Americans who own small to medium sized businesses overseas. For these reasons you could say 2018 was the most challenging year yet for expat tax reform activists, many of whom invested enormous energy advocating on behalf of the Americans abroad community during the 2017 tax writing process.
Democrats Abroad welcomes the introduction of H.R. 7358, the Tax Fairness for Americans Abroad Act. H.R. 7358 is not a perfect bill and, coming on the eve of adjournment, it cannot be given serious consideration or debate. That said, it is a milestone for advocates of a switch from the current U.S. system of Citizenship Based Taxation to the globally-accepted norm of Residency Based Taxation (RBT), and raises to attention important issues that Congress must address with hearings in the 116th Congress.