THE TRANSATLANTIC MAGAZINE
THE TRANSATLANTIC MAGAZINE
American Citizens Abroad (ACA) launched its Residence-based taxation (RBT) lobbying campaign at the beginning of July. On July 30 it officially registered as a lobbyist to move ahead and lobby for residence-based taxation and related tax bills in both chambers of Congress, using its political action committee, American Citizens Abroad Political Action Committee (ACA-PAC).
Americans living abroad must be at the table helping to decide how legislation will be written. Things can go in many different directions. Pushing smartly for this is critical,
said ACA-PAC's Charles Bruce.
Only Members of American Citizens Abroad can contribute to ACA-PAC, foreign nationals cannot contribute, and contributions are not tax-deductible. Its political purpose is to support policies on the national level which benefit US citizens overseas and it is non-partisan.
ACA said that Americans living abroad, regardless of where they live or how they vote, want the tax code to be changed from citizenship-based taxation to residence-based taxation. RBT will level the playing field and increase American competitiveness. It is the approach followed by all other countries except Eritrea.
Under RBT, individuals residing outside the US would not be taxed in the United States on their foreign income. They would only be taxable on their US income. Members in both the Republican and Democratic parties have supported RBT. This approach was adopted in 2017 for American corporations in the Tax Cuts and Jobs Act (TCJA) The same thing was not done for individuals simply because Congress ran out of time and bandwidth.
The TCJA provisions will lapse in 2025 if not extended. Just about every lobbyist in Washington knows that this subject is on the table. We must make sure that RBT which is so important for Americans abroad, is there too,
said Marylouise Serrato, Executor Director, American Citizens Abroad. Now is the time to do this. It is the perfect opportunity.
Broad alliances have started to lobby for amended international tax rules. ACA advocates for its membership – Individuals living overseas, as opposed to large corporations. It knows the details probably better than anyone, having run detailed studies ACA Global Foundation &smp; Research – American Citizens Abroad. It will leverage its members and data to educate Congress and the presidential candidates. ACA is also a leading organization of the Residence-Based Taxation Coalition, a group of advocacy organizations across the spectrum advocating for RBT.
