For the first time since the 1980’s, Congress stands a chance of moving a comprehensive package of corporate and personal tax reforms to the floor. That’s why we’re proud to share our 2017 non-resident taxation research project and will focus this week’s activity on the issue of residency-based taxation.
Why does this matter? Because we deserve a fair system. Most Americans abroad aren’t millionaires, and staying compliant with US tax filing is costly, even if you don’t have to pay a dime.
This week, review our Tax Reform for Americans Abroad campaign in a box and use the following script to call your Senators and Members of Congress. We also encourage you to use the postcard/letter writing templates found in the campaign document.
My name is _________________ and I vote in your district/state.
I live in [name of country] and like other Americans living abroad I am required to file taxes both in the US and in [name of country]. The IRS forms for declaring foreign income are very complex and the risk of making an error makes preparing the forms very stressful. Many of us pay hundreds or thousands of dollars for help filing the forms that show there is no tax to pay.
Those of us saving for the future are paying tax on the same dollar of income to both the US and our country of residence. Every American abroad (and there are 9 million of us) would like to stop paying twice.
Please support adding a switch from our current system of citizenship-based taxation to residency-based taxation to the tax reform package. If the US had a system of residency-based taxation, like nearly every other nation, then I’d still be required to report my US-based income to the IRS, but not the income I make in and pay tax on to [name of country].
Can I send you a report that profiles the hardship that citizenship-based taxation is causing Americans abroad? I think it makes a very persuasive case that the time is right to change our system to residency-based taxation (**Write down the name, title and email address of the person you’ll send the report to**). Thank you very much for your time and for your support!