THE TRANSATLANTIC MAGAZINE
THE TRANSATLANTIC MAGAZINE
American Citizens Abroad (ACA) believes that a historic moment has opened an unexpected door for one of their main causes – fair taxation for Americans who live overseas. Here's what they said:
On May 8, the Vatican elected Pope Leo XIV – formerly Robert Francis Prevost – the first American-born pope. With this unprecedented event came an equally unprecedented problem: the Pope is now subject to US taxation on his worldwide income, thanks to America's outdated citizenship-based tax system.
In response, lawmakers introduced the Holy Sovereignty Protection Act (H.R. 4501) to exempt Pope Leo XIV from US taxation. But this raises a critical question: If the Pope deserves relief, why not the 5 million other Americans living abroad?
As ACA Executive Director Marylouise Serrato told Tax Notes, "What's good enough for the pope should be good enough for the [expatriate] community." And she's right. The burdens of citizenship-based taxation – from complex reporting requirements to banking discrimination – affect all Americans abroad, not just those in the Vatican.
That's why ACA continues to champion the Residence-Based Taxation for Americans Abroad Act (H.R. 10468), introduced by Rep. Darin LaHood. This bill would allow Americans overseas to be taxed only on US-source income, aligning our system with the rest of the world and restoring fairness, simplicity, and dignity to our tax code.
But we need your help to make it happen.
The LaHood bill is gaining traction, and the Pope's situation has brought new visibility to our cause. With your support, ACA can:
This will help ensure Residence-Based Taxation (RBT) is included in upcoming legislation.
This is a once-in-a-generation opportunity. The conversation is happening now – and ACA is leading it. But we can't do it without you. Please consider donating today. Go to www.americansabroad.org/donate_tax_reform
Let's make sure that fairness isn't reserved for popes alone. It's time for all Americans abroad to be treated with equal respect under the law.
