Thanks to comment on Brock from *Johnson*. Good find by Johnson, but merely a mention of individual expat submissions from the Senate International Tax Reform Committee.
The Senate International Tax Reform report is out.
It’s 82 pages all about corporate taxes until the final paragraph where they acknowledge receiving a large number of submissions from US expatriates regarding individual international tax issues. But they aren’t going to do anything about it.
In skimming through this, I see that there is reference to individual taxation issues (what is presently in place, I think).
This is what the final section, the one we’re most interested in, says (and doesn’t say):
F. Overseas Americans
According to working group submissions, there are currently 7.6 million American citizens living outside of the United States. Of the 347 submissions made to the international working group, nearly three-quarters dealt with the international taxation of individuals, mainly focusing on citizenship-based taxation, the Foreign Account Tax Compliance Act (FATCA), and the Report of Foreign Bank and Financial Accounts (FBAR).
While the co-chairs were not able to produce a comprehensive plan to overhaul the taxation of individual Americans living overseas within the time-constraints placed on the working group, the co-chairs urge the Chairman and Ranking Member to carefully consider the concerns articulated in the submissions moving forward.
Notice how Overseas Americans come under “F” and we all know what four-letter word that stands for. Yes, SFC we get your subliminal message and we have a one-finger response. Kicking the CBT/FBAR/FATCA can of worms down the road is unacceptable. “Carefully consider the concerns” is just poli-speak for “forgeddaboutit”.
Starting on page 48 is a section about “Income Taxation of Individuals” but it’s of no value. It’s just excerpts from current IRS tax code. No recommendations there.
Why am I not surprised?
I just filed this in my SFC folder but I renamed the pdf “Big Fat Useless Report”. If anyone finds a ray of hope in there let me know. What we did get from this is over two hundred excellent testimonials to draw from when we want to illustrate the unfairness of the CBT/FBAR/FATCA troika.
This is an outright insult to expats. That they could be so smug and dismissive is appalling. So they ask for submissions and then they ignore them even though the submissions compromised 75% of all submissions received.
All expats merit is 2 short paragraphs at the end. Shameless.
If anyone has been waiting to donate for some fairness they thought would come from the US Senate International Tax Reform Committee, wait no longer.
Please support litigation, wherever it appears.
In Canada, we really need to top up the lagging donations at http://www.adcs-adsc.ca/ in preparation for the first court date(s), starting August 4th.
Hi, recalcitrant. Good to hear from you.
Shameless and Shameful!
Section “F” of this report at least does put in writing CBT, FBAR, and FATCA — in a printed and distributed Senate committee report. So for as much as it is worth, there is written proof that these topics are recognized as being of concern to 3/4 of the respondents to the Committee’s request for submissions.
As far as time constraints having precluded developing a “comprehensive plan to overhaul the taxation of individual Americans living overseas” — a simple recommendation now to switch to residence-based taxation would be a quick way to speed up the overhauling process. So simple, so obvious. (Yeah, I know…)
OK, we need to do something. What??? Obviously we have not done enough. No one is hearing us. We need to hound all of the candidates campaign pages en masse, all that vote register in Florida (word on the street… this is easy to do), a swing state, and launch a CBT lawsuit, yesterday. Where are those AmCham folks from the UAE that stated they wanted to “unite” forces in “The Hill” article? We need some deep “oil money” pockets. Anyone got $500K spare change? (Of course we must still focus on our own Canadian suit and find a different donor set for a CBT challenge). Is there a list of US exporters someplace?
I’m channeling Mr. Brock at the moment…anyone want to come?
Regarding “the co-chairs urge the Chairman and Ranking Member to carefully consider the concerns articulated in the submissions moving forward.”
I would like to know how the working group staff summarized and presented these CBT/FBAR/FATCA concerns of Americans abroad. I’d expect there would be substantive briefing materials including more detailed and descriptive spreadsheets identifying these concerns and problems, and not just the report’s 2 paragraphs.
What does ACA say?
What does DA say?
What about RO?
This again confirms what homelanders think of us?
They should have simply wrote.
F. Let them eat cake.
Thanks Calgary411. I wish that there had been better reasons for my post.
It sure didn’t take long for the government to figure out that the 450.00 renunciation fee was too low. If they had devoted 75% of their allotted time this issue then they could have come up with an answer.
R.B.T isn’t that hard to comprehend or implement.
You may have heard the meme of PROBLEM – REACTION – SOLUTION. The SFC was made very aware of the PROBLEM. They had little REACTION. And they have offered no SOLUTION, even though many of those who informed them of the problem made it very clear what the solution is and the solution is as easy as ABC.
A – Abort CBT
B – Become part of the international norm
C – Codify RBT
The IRS has reported to Congress several times over the years on the ways in which laws and IRS policies abuse non-resident US citizens, in writing, published, and often more than one paragraph per report. The US knows what it’s doing and it’s intentional. This Senate report isn’t an improvement. If anything, it’s a step back.
Give up. The US doesn’t want us. Keeping US citizenship is just asking for trouble.
ADCS is doing the right thing. Let’s hope Canadian citizens can have their Canadian citizenship restored. I will mail my third donation today.
Although they punted it, the U.S. recognizes that CBT/FATCA/FBAR present an issue for Americans living abroad. Historic, really.
Yesterday it is, Charl!
Until they find the time to implement the very simple and obvious ABC solution, they should offer a temporary solution, for some at least: A sale on renunciations — say $200 and a mail-in form.
That’s breathtakingly lame. Especially disappointing after the hint they gave in December that they were interested in considering solutions to our problems.
And the Individual Taxation committee report doesn’t even acknowledge the flood of submissions they received!
I didn’t hold much hope from these reports, but this is just insulting.
@ canoe
In monopoly the Get Out of Jail Free card is considered to be worth $50. Just saying …
@EmBee — maybe I allowed for inflation!
Here’s the link to the short press release for the reports: http://www.finance.senate.gov/newsroom/chairman/release/?id=91b11f78-3ca0-4b45-9bf7-1644945f35b9
“The Finance Committee’s bipartisan tax working groups have spent the last several months examining various aspects of the code. As a result, members were able to submit thoughtful feedback and provide innovative solutions to addressing the challenges of our nation’s outdated tax system,” said Hatch. “Any remake of the U.S. tax code, should work to lower the rates and broaden the base. We need to simplify the code and make it easier for families and create a system to keep American job-creators competitive around the globe. Now, armed with new ideas, I plan to work with Senator Wyden to review each working groups’ report and examine how they can be used to further advance the Committee’s efforts to achieve this bipartisan goal.”
“I’m very appreciative of the time and effort my colleagues put into this exercise,“ said Wyden. “Their constructive feedback and ideas are essential as we push ahead toward our shared goal of modernizing the tax code.”
@ foo “And the Individual Taxation committee report doesn’t even acknowledge the flood of submissions they received!”
The Individual Taxation report focuses on such a few very specific topics, which to ordinary me seem pretty obscure. It’s like they were so focused on writing what they did that they couldn’t take the time to read all the submissions.
Regarding 82 page U.S. Senate International Tax Reform Report released…
Posted on July 8, 2015 by calgary411 Posted in Issues regarding US persons abroad
Just sent info to many US newspapers and comments as per my media emails I put on earlier. All the more reason to post on https://www.facebook.com/FoxNews
Postings on https://www.facebook.com/FoxNews
Went through another 2000 with key search “tax” ONLY ONE more
Nathan J. Churchill There are over 8 million Americans living overseas. Recent FATCA tax legislation is causing serious harm to all of us, indeed making our lives almost impossible. We overseas Americans have enough votes to swing the election and are almost all single issue voters until FATCA is repealed. What is your position on FATCA?
http://www.finance.senate.gov/newsroom/chairman/release/?id=E9EEFC66-7E11-4276-939F-3ECA6FD6D959