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Tiny Action: Fight for RBT this International Tax Day

April 15 may be Tax Day in the US, but for those abroad, the big deadline is June 15.

This is the perfect time to remind Congress that the 2017 “tax reform” once again completely ignores Americans abroad, and worse still, subjects thousands if not millions of us to yet another punitive provision in the form of transition taxes.

What tax solution would support Americans abroad? Residency Based Taxation, and exemption from tax policies that unfairly group everyday Americans abroad with the super-rich in the US who use offshore accounts to hide from the law.

This week’s Tiny Action: Tell your Senators and Representatives to provide a fair remedy for Americans abroad this International Tax Day.

The script below asks your Members of Congress to support:

  • The Residency Based Taxation proposal in development in the Ways & Means Committee
  • The Overseas Financial Access Act HR 2136, so that we do not have to report our foreign financial accounts under FATCA
  • an exemption from the “transition taxes” in the 2017 tax law to prevent the destruction of many thousand of businesses owned by Americans living abroad
  • a remedy for accidental Americans and Social Security recipients

Hi, my name is [NAME] and I'm a constituent who votes in [DISTRICT/STATE] but I’m calling from [LOCATION], where I currently live. I’d like to ask the [Senator/Congress(wo)man] to support a tax remedy for the millions of Americans abroad who are unfairly treated under our current tax code.

Like all Americans abroad I am required to file taxes both in the US and in [COUNTRY]. There are 6.5 million people like me, living outside the United States, struggling with the current tax code because it discriminates against us in so many ways.

We were – and continue to be – forgotten in this system. For example, the “transition taxes” in the 2017 Tax Act will devastate countless American business owners abroad, forcing them to close their companies. Despite the 12 month reprieve from filing, these new taxes will have devastating results.

It would take Congress years to address ALL of the tax code provisions that harm Americans abroad. That is why Americans abroad want the US to move from our current system of citizenship based taxation to residency based taxation. If the US had a system of residency based taxation, like nearly every other nation, I’d still be required to report my US-based income to the IRS, but not the income I make in and already pay tax on to [COUNTRY].

Congressman George Holding is working on a Residency Based Taxation proposal. I ask [NAME] to work with Congressman Holding’s office on the development of a bill to enact Residency Based Taxation.

I am also asking for [his/her] support for HR 2136 the Overseas Americans Financial Access Act, which would exempt Americans living abroad from disclosures on the financial accounts where they live – accounts they need to pay bills and save for the future.

There are two final things I’d ask for - that the [Senator/Congress(wo)man] also support HR 1205, the “Social Security Fairness Act” which will allow Americans abroad with pensions where they currently live to claim the full amount of Social Security payments owed to them; and a fix for accidental Americans. Those, for example, born to non-American parents who were temporarily residing in the US at the time of their birth. Since they’re technically American, they’re also expected to file along with the rest of us. Of course, renouncing their citizenship is possible, but it’s an incredibly lengthy and expensive procedure.

It’s really terrible to hear stories of Americans who have had to renounce their citizenship because of the tax code. That’s not what we want. But these people - who are American only on a technicality - should be able to shed this unfair burden.

Thanks very much for your time.

 

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Tiny Action: Attention Alumni!

The March for Our Lives movement has developed into a full-blown nationwide tour to register new student voters ahead of this year’s midterm elections. If you’re inspired to help and have already reached out to any young voters you may know, we’ve got another step you can take.

This week’s Tiny Action: Ask your stateside Alma Mater to help study abroad students Vote From Abroad!

  1. Search online for [your alma mater] + [study abroad] + [contact] to find the right person to reach out to.
  2. Use the script below to call or email.
  3. If you choose to call them, please then send their contact details to help@votefromabroad.org.

 

Call/Email Script:

Hello! My name is [NAME] and I am a [YEAR] graduate from [INSTITUTION; DEGREE PROGRAM].

Currently, I live abroad in [LOCATION]. As an international alumni, I wanted to reach out to you about a resource that has been really valuable to help me vote from abroad, that could be just as valuable for your study abroad students, too.

Vote From Abroad (votefromabroad.org) is a nonpartisan website that helps Americans living and studying overseas to register, request and return their ballots in each election. It’s 100% volunteer run and helps voters request a federally-protected overseas absentee ballot (FPCA), which offers options not available to those who request a general absentee ballot.

I really want to be sure every [INSTITUTION] student that wants to vote, can vote, this and every year. That's why I volunteered to reach out to you.

I’m also providing a couple things for your reference:

    - Sample letter to students so they know how to register to vote before or after they’ve left for their study abroad term.
    - A couple of informational posters that we’ve created recently (1 and 2). We’d be happy to do something similar for you.

Helping your students vote from abroad not only offers them the information they need to be able to vote, but also provides them a unique experience to add to their bucket list while abroad. As well, many of your study abroad students will develop a new appreciation for American democracy, and why their right to vote is fundamental to that enterprise.

If you’d like to find out more, please just send an email to help@votefromabroad.org, and a volunteer from their team will get in touch.
**If you are calling instead of emailing, please write down their email address and send to help@votefromabroad.org**

Please note that as this is US voter registration, it must be 100% non-partisan.

Thanks very much for your time.

[NAME]

 

WHY IT MATTERS

Study abroad students aren’t exposed to the same voting reminders their peers get on American campuses. Amid classes, travel and new experiences, they also have fewer opportunities to meet groups such as Democrats Abroad. This means they’re likely to be missing out on the chance to vote this year. We can change that.

At the same time, study abroad offices at American universities don’t know what we know - that requesting a ballot from abroad is easy, but that it doesn’t happen without a little effort. They also may not know that nonpartisan sites like Vote From Abroad can offer free resources for their students. We can change that, too, with the help of a few of their alumni/ae (YOU!).

 

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Tiny Action: Families Belong Together

Day after day, we learn more egregious details on how the Trump administration is handling the arrival of immigrant children: separating them from their families without providing guarantees they will reunite in the future with their parents or other close relatives.

This week’s Tiny Action: Stop DHS from separating families and pressure Congress to take action to #EndFamilySeparation once and for all.

Tell your Senators and Representatives to use their authority to stop separating families at the border and to demand oversight hearings into border patrol tactics and records of abuse.

Hi, my name is [NAME] and I'm a constituent who votes in [CITY/STATE] but I’m calling from [LOCATION], where I currently live.

I’m calling today to tell [Senator/Rep] to speak out against the Trump administration’s separation of immigrant families at the border. This policy is cruel and inhumane and must stop.

For starters, I’d like the Senator/Rep to cosponsor the HELP for Separated Children Act, which strengthens protections for immigrant families and children.

I also need the Senator/Congress(wo)man to support Congressional oversight hearings into this traumatic and unnecessary tactic, as well as a robust investigation into the allegations of ICE and Border Patrol agents abusing detainees. It is unacceptable for our country to allow migrants and asylum seekers to be treated so dreadfully.

Thank you for your time and attention.

[IF LEAVING A VOICEMAIL: please leave your full voting address to ensure your call is tallied]

 

WHY IT MATTERS

Right now, the Trump administration is causing hundreds of immigrant children severe damage all for the sake of enforcing a xenophobic agenda, and we see no signs that this situation will improve without congressional intervention.

In previous administrations, parents who were caught at the border were allowed to stay with their children in shelters while their cases were being adjudicated. Sometimes they were ultimately removed from the U.S., but the point is that they were allowed to stay together.

In May, AG Jeff Sessions declared that the Department of Justice would seek "100% prosecution" of all who enter the U.S. illegally and separate parents from children instead of keeping them in a detention center together. In the first two weeks after the policy was implemented, over 600 children have already been ripped away from their parents, including those as young as 18 months old being placed in shelters, with parents not knowing where their children are or whether they are doing ok.

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Tiny Action: Plan Your Memorial Day

Memorial Day is not about barbecues and summer kick-off parties. It’s also not about how we feel about today’s elected leaders, or even where we may stand on America’s military actions.

Next Monday, Memorial Day, gives us one single day — and one single moment in particular — to honor those who gave their lives for the country. To remember, so that we do not forget, the sacrifice that American families have made, over one million times.

This week’s Tiny Action: Take a moment to support those who have given so much, and, if you can, join us in person this Memorial Day to honor those who have died.

Visit your country’s page in the menu above to find out if an event will be held in your area.

Democrats Abroad has been a strong supporter of veterans and military families around the world since our inception, and we continue to continue to do so today. As we mark the 100th anniversary of the end of WWI this year, we’ll be visiting memorials and laying wreaths at cemeteries around the world and we welcome you to join us.

Then, show your appreciation on social media and learn more about how to support our military families. Click through to read about the latest work of the Military Task Force of the National Lawyers Guild and the Vet Voice Foundation.

 

WHY THIS MATTERS

Honoring those who died for America, even if we disagree with our leaders and some of the choices they make is simply the right thing to do.

In his last Memorial Day Address, President Obama said, “It is our responsibility, our obligation, to fill the silence [of loss] with our love and our support and our gratitude -- and not just with our words, but with our actions….

“Truly remembering means that after our fallen heroes gave everything to get their battle buddies home, we have to make sure our veterans get everything that they have earned, from good health care to a good job. And we have to do better; our work is never done. We have to be there not only when we need them, but when they need us.”

We do so not just by hoisting a flag, but by lifting up our neighbors. Not just by pausing in silence, but by practicing in our own lives the ideals of opportunity and liberty and equality that they fought for.”

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Tiny Action: Can We Save Net Neutrality?

Just yesterday, Senate Democrats successfully blocked the GOP rollback on net neutrality rules, thanks to all 49 Dem Senators, and Republican Senators Collins (ME), Kennedy (LA) and Murkowski (AK). While this is a BIG win, it’s just one step. Now we take this fight to the House.

This week’s Tiny Action: Call and email your representative to demand that they use the Congressional Review Act to save net neutrality.

My name is [NAME] and I vote in [ZIP CODE/STATE].

I’m calling to ask Congress(wo)man [NAME] to use the Congressional Review Act to save net neutrality, and to support House Joint Resolution 129 to nullify the "Restoring Internet Freedom" rule submitted by the FCC.

Like 4 in 5 Americans and the majority of the Senate, I know that this rule will do the exact opposite of “restoring internet freedom.” Rolling back net neutrality favors major corporations' interests over the will of the people, and our free speech rights.

If the president were to veto the resolution, I realize it’s unlikely that the current Congress will override this veto. That’s why I’ll be voting this fall for those who are willing to stand up to Trump. I’ll be voting for those who will use their power to push legislation that protects an open internet that works in the interests of the people, and not corporations.

Thank you for your time, and I look forward to your support on this important issue.

[INCLUDE BOTH NAME AND VOTING ADDRESS IF SENDING EMAIL]

What Is Net Neutrality?

Net neutrality prevents internet service providers (such as Comcast or AT&T) from controlling what reaches consumers at what speed. It also:

  • Prevents the richest organizations and corporations from controlling the internet.
  • Stops wealthy, extreme lobbying groups. from blocking access to accurate information they don’t like.
  • Ensures small businesses, low-income individuals and much of rural America have access to more affordable, reasonably fast internet.

 

Why It Matters

We need the open internet to foster job growth, competition, innovation and to protect our rights. It means activists can turn out thousands of people in the streets at a moment’s notice. And small business owners, startups and entrepreneurs can launch businesses, create markets, advertise, and reach customers. Without net neutrality, the internet would be changed from a free space to one controlled entirely by corporate interests.

In December, the FCC repealed net neutrality rules, despite major opposition from the public, scathing dissent from both Democrats on the FCC, and even activism from internet giants. Immediately afterward, Democratic legislators vowed to fight the repeal. We just got one step closer to winning that fight.

 

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Tiny Action: Protect Our Voting Rights

With the midterm primary season now in full-swing, we hope to see more people requesting their ballots, contacting their state officials, and talking to other Americans about voting from abroad (you have, right?).

Unfortunately, we’ll also continue to see states working to make it harder for Americans abroad to vote, in addition to misinformation about voting from abroad continuing to spread. Although this is almost always accidental, that doesn’t mean we can ignore it.

This week’s Tiny Action: Be ready to fact check the truth about voting abroad. Know your rights and help us spread the word.

Our voting experts see comments every day along the lines of: votes won’t be counted; voting from abroad in a federal election will lead to tax consequences by default; and even that submitting a ballot or ballot request incorrectly is a crime — none of which are true, according to U.S. federal law.

Unfortunately rumors spread faster than facts, and often just hearing reasons not to vote will deter millions of voters abroad from voting this year, regardless of whether these reasons are valid.

Help protect our rights and spread the word this week — and through election season:

1. Post the facts on social media.

Everyone deserves a vote. Stand up against voter suppression so we can all #VotefromAbroad.

FACT: Federal elections include midterms. If you can #votefromabroad for president, you can do the same in the midterms.

FACT: Every vote is counted in every election. Even those that #votefromabroad.

FACT: Each vote counts. Those of us who #VoteFromAbroad have swung elections before, and we’ll do it again.

Or create a similar message of your own.

2. Stay informed

3. Use your voice

Also...

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Tiny Action: Help Americans from your State Vote Abroad

If you haven’t requested your 2018 overseas absentee ballot and confirmed with your Local Election Office, now is the time! 16 states have big deadlines, PRIMARIES, and/or special elections in the next two weeks, including North Carolina, Ohio, Pennsylvania, Texas and West Virginia. Now’s the time for your voice to be heard.

Even if you’ve already requested your ballot, we need your help, too.

Even if you're a registered voter, your state is only required to send a ballot if you request it that calendar year, and sending in the form protects your ballot from challenge at the federal level in case of a recount. Don’t be disenfranchised; every vote matters, now more than ever!

This week’s Tiny Action: Help us confirm that voters in your state can easily vote from abroad and double check that your overseas absentee ballots are on the way if you haven’t already done so.

  1. Help us ensure that voters of your state can easily vote from abroad. Using our Local Election Office finder, find your State Election Website under State Lookup Tools.

  2. Complete this survey - just 6 questions about whether overseas voters can find the answers they need within five minutes on your state’s election website. We’ll use this information to provide recommendations to states and fine-tune our strategy to help voters in all 50 states vote.

  3. Finally, if you haven’t yet requested or confirmed that your ballots will arrive:

    Click “start here” on Vote From Abroad, follow the prompts to complete your overseas absentee ballot request and mail it in as instructed (by post or electronically).

    Then, find your Local Election Office here and contact your LEO to verify they received the form and will be sending out your 2018 ballots. Most states provide online ballot request status via their election website, but in EVERY state, your election official will respond to requests by email or telephone about the status of your overseas absentee ballot request (“FPCA”)

WHY IT MATTERS

At BEST, only 4% of Americans overseas vote. But for most of them, this is just because they don’t know they can, or they don’t know how. If we can ensure that answers are easy to find, this WILL change election results.

While Democrats Abroad is doing everything we can to activate members like you, there are millions of Americans overseas who visit their state websites looking for answers. We want to be sure those answers are findable and accurate.

Federal elections, including those in 2018, mean more than just President. It also means Senator and Representative. This year we have the chance to vote for ⅓ of the Senate and EVERY member of the House, and we need your help to power the wave!

Why do we suggest completing an overseas absentee ballot request?

Sent in the calendar year of an election, the overseas absentee ballot request ensures you receive a ballot for every election in that calendar year, including primaries, special elections and runoff elections. It also protects your ballot at the federal level in case of a recount.

With this form, you can request your ballot be sent via email, fax or online instead of by post; your state is required to send your ballot at least 45 days before the election; you are also given the option to submit a ‘backup’ ballot if your ballot does not arrive in time to send it in by the deadline. Many states also allow overseas voters additional time to submit their ballots and/or to submit ballots electronically.

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Tiny Action: Protect American Families

Just days before Congress hammered Mark Zuckerberg over data privacy, Trump’s Department of Homeland Security submitted a rule that would require all visa applicants to the U.S. to release their social media identities for the previous five years when applying for an immigrant or nonimmigrant visa.

This is part of this administration’s continued, unnecessary closed-border policies that directly impact Americans abroad and our families.

This week’s Tiny Action: Protect American families impacted by harmful immigration policies.


1. Submit a comment in opposition to these new plans mentioned above, by emailing PRA_BurdenComments@state.gov.

My name is [NAME]. I am an American living in [CITY, COUNTRY] and I vote in [STATE].

I am submitting my comments for Docket Number DOS-2018-0003.
        - Title of Information Collection: Electronic Application for Immigrant Visa and Alien Registration.
        - 
Form Number: DS-260
        - OMB Control Number: 1405-0185.

I strongly oppose the collection of social media data from visa applicants and the additional questions proposed to the visa application process. It is intrusive, unnecessary and an ineffective use of resources, and likely opens the door to racial profiling of visitors and immigrants.

This clearly goes beyond what is relevant or necessary to protect national security, and in some instances even go further into individual histories than security clearance forms for government employees.

The questions proposed are overly broad and burdensome and do not include any standards or guidance regarding who will be asked these questions, thereby increasing the likelihood of inconsistent and ineffective determinations as well as bias and profiling in visa adjudication.

The proposal offers no specificity with respect to social media, creating substantial concerns regarding the meaning or purpose of the question; the substantial impact of the question on privacy and freedom of speech and expression of U.S. citizens and residents; and the use, storage, and retention of the information collected about visa applicants, U.S. citizens, and U.S. residents.

Finally, the department’s own materials estimate that this would add an additional 1.8 million annual hours of work, which is an inappropriate use of resources and adds to the already extensive wait time for visa applicants.

As an American living overseas, I understand the importance of proper vetting and a stringent visa application process. But I also understand what the impact of this proposal would be. The 14.7 million people who would be affected include thousands if not millions of multinational American families. The ability for our families to visit loved ones in the U.S., and to return to the U.S. with us, should not be held hostage by arbitrary searches.

Please do not add to our already extensive, exhausting visa application process.

Sincerely,

2. Tell Senate to vote for the Leahy-Daines bill, to place restrictions on searches and seizures of electronic devices at the border (S.2462).

My name is [NAME]. I am an American living in [CITY, COUNTRY] and I vote in [ZIP, STATE].

I’m calling to ask Senator [NAME] to support the Leahy-Daines bill, to place restrictions on searches and seizures of electronic devices at the border (S.2462).

The recent news that the Department of Homeland Security may ask visa applicants to hand over their social media accounts as one of multiple additional steps in Trump’s “extreme vetting” is unacceptable. The border is not a Constitution-free zone.

As an American living overseas, I understand the importance of proper vetting and a stringent visa application process. But I also understand what the impact of this proposal would be. The 14.7 million people who would be affected include thousands if not millions of multinational American families. The ability for our families to visit loved ones in the U.S., and to return to the U.S. with us, should not be held hostage by arbitrary searches.

Thank you very much.

3. Tell your Rep and Senators to vote for the Adoptee Citizenship Act of 2018 (H.R. 5233; S. 2522).

My name is [NAME]. I am an American living in [CITY, COUNTRY] and I vote in [ZIP, STATE]. I’m calling to ask Senator/Congress(wo)man [NAME] to support the Adoptee Citizenship Act of 2018 (H.R. 5233; S. 2522), to provide citizenship for adoptees to American parents.

International adoptees who were adopted by American parents and raised as Americans should have the same rights of citizenship as biological children. For the 35,000-75,000 international adoptees living in the United States without citizenship, as well as the thousands more living with American parents overseas, this must be corrected.

Thank you.

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Tiny Action: Power the Blue Wave

A lot of people ask us if they can vote this year, and if voting in 2018 is worth it.

Yes. And Yes.

Midterm elections are federal elections, which means that anyone who can vote in a presidential election year can also vote for Senate and House races in the midterms.

And WOW is this year’s election important. If Democrats take back Congress - and we can - we will change Washington. Which is why our single most important task this year is getting all Democrats abroad to vote. This is not a task for October. This is an action for NOW.

This week's Tiny Action: Sign up to be a phone bank volunteer, and start making those calls! 

88% of members we called in 2016 submitted a ballot, but less than 2 in 10 of you signed up to phonebank when we asked in February. So we’re asking again.

Phone banking is easy, flexible, free (with an internet connection and laptop) and rewarding. Phone bankers in the U.S. are shocked to hear how often our members THANK us for calling them about voting!

New to phone banking?

  1. Log in to democratsabroad.org and sign up to help with phone banking.
  2. Review important info for first-time phone bankers
  3. You will receive an email from CallHub - the system we use to call Americans abroad - to activate your account.
  4. Log in to CallHub and get started!


Returning phone banker?

  1. Review the refresher materials and info on current campaigns here: https://www.democratsabroad.org/phonebanking
  2. Go to https://callhub.io to enter your username and password.
    - Your username is probably country code and name. Ex: CA-Heidi-Burch
    - Forgot your password? Click Forgot to receive CallHub instructions to set up a new one.
  3. Start making those calls!

Overseas votes HAVE decided close elections in the past, and we’ll do it again - but not without your help.


MORE INFO

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Tiny Action: Demand A Tax Remedy

MANY flaws exist in the Tax Cuts & Jobs Act. We know it, voters in the US know it, and even Republican leaders (deep down) know it.

But one thing that few people know is the catastrophic damage the new rules will have on the many Americans overseas who own their own business. If followed through, these policies could literally bankrupt countless small companies owned (or partly owned) by Americans abroad.

This week’s #TinyAction: Demand Americans abroad be exempt from Repatriation & GILTI Taxes.

*If you are a small business owner overseas, please use this more detailed script provided by our Taxation Task Force.
*Does this action look familiar? Good job! You’re also signed up to receive emails from our Taxation Task Force. In this case, the issue was important enough to raise twice.

This is an urgent issue that we can’t wait for Congress to fix, so we’ve drafted language for you to use in an email to the Treasury/IRS and relevant Congressional Committees.

To: David.kautter@treasury.gov, Lafayettechip.harter@treasury.gov, William.m.paul@irscounsel.treas.gov, Arlene.preston@irscounsel.treas.gov, Leni.c.perkins@irscounsel.treas.gov, Barbara.angus@mail.house.gov, Aaron.junge@mail.house.gov, Kara.getz@mail.house.gov, Mark_Prater@finance.senate.gov, Tiffany_smith@finance.senate.gov

Cc: RepatRemedy@democratsabroad.org

Subject: Repatriation/GILTI Tax Relief for Americans business owners abroad

Dear Mr. Kautter, Mr. Harter, Mr. Paul, Ms Preston, Ms. Perkins, Ms. Angus, Mr. Junge, Ms. Getz, Mr. Prater and Ms. Smith,

My name is [NAME]. I’m an American who votes in [STATE], currently living in [COUNTRY]. I’m writing today to ask that you address two components of the Tax Cuts & Jobs Act that will have disastrous impact on Americans overseas like me.

The Repatriation Tax and the GILTI Tax were created with giants like Google and Apple in mind. But they offer no exemption for the millions of Americans overseas who own small businesses, who will be drastically (and unintentionally) hurt by this policy flaw.

The great majority of us are just like our fellow Americans at home. We are law-abiding, tax-paying citizens, working to support ourselves and our families. We are not the 1%. I understand these taxes were designed for large, aggressively tax-structured multinational corporations, but the rest of us are swept up in these policies, and in fact treat us much worse.

1. These companies are entitled to tax credits and deductions that Americans living overseas are not privy to. So while corporations can minimize or avoid these taxes, we cannot.

2. We are now obligated to deal with exceedingly complex tax and filing requirements that came without warning, designed for multinational corporations, which are now virtually incomprehensible because of incomplete IRS guidance.

There is an easy solution for this. Americans overseas with interests in foreign corporations should be exempt from the Repatriation Tax and from the GILTI regime so long as we meet the conditions required for exemption under IRC Section 911, and we are individual U.S. Shareholders.

This will capture the corporate tax that has long been denied (as intended) while recognizing that the profits our businesses generate were always meant to remain in the place where we have made our lives -- in our cases, this happens to be overseas.

But Congress will struggle to enact a remedy as soon as we require. So I urge the Treasury and IRS to take the following actions:

1. Issue an immediate notice stating that for Americans abroad, the first payment under IRC Section 965 is due the earlier of October 15, 2018, or the issuance of further guidance.

2. Issue a further notice in line with this proposal.

Thank you for your attention and I sincerely hope that the Treasury/IRS can address this matter until such time as Congress acts.

Sincerely,

[NAME]

 

WHY IT MATTERS

In addition to continuing to fail to address the needs of individual citizens abroad, the new system under the Tax Cuts and Jobs Act has two troubling components in particular.

Repatriation Tax: Overseas profits for American-majority owned corporations will be subjected to a one-time tax on all profits going back to 1986.

This tax was intended to target U.S.-based parent corporations with foreign subsidiaries, which receive a range of offsets and credits for taxes paid in other countries. However, these deductions are not available for overseas Americans, which means that if an overseas business set up as a corporation is owned (or majority owned) by Americans living abroad, they will be forced to declare profits going back 20 years on their 2017 tax filing.

Global Intangible Low-Tax Income (GILTI) Tax: Going forward, foreign businesses owned by Americans will, again, be subjected to U.S. corporate tax on profits, less about 10%, regardless of whether or not profits are repatriated. As with the Repatriation Tax, U.S.-based corporations with foreign businesses are afforded deductions and offsets so significant that in many instances, it will mean they owe zero taxes to the United States.

Once again, these deductions are not available to overseas Americans. Overseas US citizens who own a business in the country they reside in cannot defer income from GILTI, and will be subjected to US corporate tax on profits, even if those profits never leave the country where the corporation is based.

These Americans, who live overseas and majority own corporations, will be taxed twice on the same dollar of income. Here’s an example of how it might work in real life.

Clearly, these are both grievous errors in drafting and must be addressed urgently. Please join our call for action and email the Treasury/IRS and Congressional leadership today.

 

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