Thursday, May 23, 2024

More organizations join coalition fighting for new tax rules for US expats

An advocacy group fighting for new tax rules for U.S. citizens living abroad has gained momentum after two new organizations joined its coalition. 

American Citizens Abroad (ACA) argues that U.S. expats should pay residence-based taxation (RBT) rather than citizenship-based taxation (CBT). 

Under CBT, U.S. citizens have to pay tax to the U.S. treasury whatever country they live in, due to the fact that they’re passport holders. RBT legislation would disqualify foreign-earned income from U.S. taxation. Internationally, CBT is more the exception than the rule: most countries base taxation on RBT. The ACA said tax reform for Americans abroad had been overlooked in previous tax legislation reforms.  

In late October, two new organizations joined the coalition: Democrats Abroad, a group for expats who support the Democratic Party, and American Families United, a organization that lobbies for reform around immigration law for families.

ACA was founded in January 2021, and quickly assembled a wide coalition. The member organizations are The Adrian Leeds Group (Paris, France), AmCham Abu Dhabi, the Association of Americans Resident Overseas (AARO), the American International Club of Rome, Americans Overseas, Angloinfo, Bright!Tax, Dunhill Financial, ExpatExchange, National Taxpayers Union (NTU), Swiss American Chamber of Commerce and White Lighthouse Investment Management.

Executive director Marylouise Serrato said ACA’s wide membership proved the value of their cause. “The expanding membership in the RBT Coalition indicates the importance of tax reform for Americans overseas and shows that support covers various sectors and interests; it is not just organizations representing Americans overseas that support tax reform for this community,” she said.

Chairman Jonathon Lachowitz added that interest in reforming CBT went beyond the ACA membership. “Our advocacy efforts in Washington, D.C., tell us that congressional offices are hearing from a wide range of individuals, businesses and organizations calling for tax reform for Americans overseas,” he said. 

The RBT coalition said it makes information available to the U.S. government, the media and the public, and that organizations are invited to join the coalition. 

More information about the RBT Coalition can be found at their website.

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