A new working paper tax proposal is now posted at the American Citizens Abroad (ACA) website with the recommendation for fundmental reform of the US tax law affecting Americans resident abroad.
ACA will be sending this document to members of the House Ways and Means Committee and Senate Finance Committee, and urges all Americans overseas to contact by phone the tax staffer of their Representative and Senators in D.C. to inform them of this proposal and to encourage them to consider supporting legislation to move forward with this concept.
Please distribute this information as widely as you can in the US Expat community.
The proposed change outlined in this working paper from citizenship-based taxation to residence-based taxation is revenue neutral and brings major economic advantanges to the United States.
ACA proposes two complementary changes to U.S. tax laws as they apply to overseas residents:
1. Eliminate citizenship-based taxation and replace it with residence-based taxation.
2. Collect withholding taxes on all U.S source passive income (including dividends, interest, royalties, pensions, et.) of overseas Americans on the same basis as the U.S. collects witholding taxes from non-resident foreigners on U.S. source income.
ACA proposals apply only to Americans and green card holders with an established overseas residence. In no way, do they affect U.S. residents with assets overseas, whether taxed or untaxed. The issues addressed by ACA are not related to tax evasion.
Read more about the advantages of this fundamental change here.
The related Press release is located here. Please send this PR to all your media and press contacts.
A representative from ACA will be in DC in the coming weeks to lobby for these changes.