THE TRANSATLANTIC MAGAZINE
THE TRANSATLANTIC MAGAZINE
On May 12, 2025 American Citizens Abroad (ACA) and Americans for Tax Reform (ATR) announced that they will team up to advocate for the end of double taxation on Americans living abroad. The goal is to replace the current citizenship-based taxation (CBT) system with residency-based taxation (RBT). The US is one of only two countries in the world to use CBT, which taxes citizens on worldwide income, regardless of where they live or earn. (The other is Eritrea).
This effort aims to reform the outdated, harmful 'citizenship-based taxation' model that the United States currently uses,
said Marylouise Serrato, Executive Director of ACA. Reform is critically needed – and we look forward to working with the Trump Administration and Congress to modernize this tax policy for the benefit of the American people and the economy. Now is the time to make your voice heard to end double taxation on Americans overseas. We hope more groups will join our efforts and contact Congress to pass this pro-growth policy – that ACA has shown can be revenue neutral – in the tax bill this year.
ACA was founded in 1978 in Geneva, Switzerland, by the late Andy Sundberg.
The joint ACA-ATR effort comes at a pivotal time as discussions surrounding the renewal of the Tax Cuts and Jobs Act (TCJA) appear to be gaining momentum in Congress.
ATR has been pushing for residency-based taxation and stopping this discriminatory and outdated system,
said Grover Norquist, President of ATR, and its founder, in 1985, at the request of President Reagan. Every other country is right to use a residency-based system. American business suffers real add-on consequences when Americans lose out to foreign citizens for international positions. We're proud to support this collaboration to end double taxation on Americans around the world.