Yes, we all know that the U.S. House Ways & Means Committee is focused on tax reforms for “businesses”, but the (Republican) Tax Reform Task Force does say:
— “In addition to these important reforms that will create a modern international tax system for businesses, the Committee on Ways and Means will consider the appropriate treatment of individuals living and working abroad in today’s globally integrated economy.”
Republicans Overseas (RO) has now released (see link) its “White Paper” summarizing key details of its proposal on “Territorial Taxation” for individuals.
Would the readers of this post who care about U.S. tax legislation be better off — or not — if the RO White paper were enacted?
You can send your point of view to the Members of the House W & M. RO says: “We welcome your comments and suggestions. Please email them to Mr. Keith Redmond at FATCA_Testimonials@outlook.com for our consideration and addition.”
From The Republicans Overseas FB site:
[Go to the RO FB page for details: https://www.facebook.com/republicansoverseas]
The gist of the White Paper is:
“Details of Territorial Taxation Proposal for Individuals:
What would be Taxed:
— Any wage, salary, pension, dividend, interest, commission, service or other income paid
by a bank, corporation or other entity organized within the U.S.
— Capital gains on sales of any assets, tangible or otherwise, located in the U.S. and
securities of corporations or other entities organized within the U.S. or listed or traded on
a securities exchange with the U.S.
— Any wage, salary, pension, commission, service or other similar income paid to an
individual resident in the U.S. by any corporation or other entity organized outside the
U.S.
— Any dividends paid to an individual resident in the U.S. by any corporation or other
entity organized outside the U.S. that is actively managed and/or controlled, individually
or jointly, by such individual to the extent such dividends are derived from earnings of a
business engaged within the U.S.
— Any dividends or interest of a passive nature (not from a company actively managed
and/or controlled, individually or jointly by the resident) paid to an individual resident in
the U.S. by any bank, corporation or other entity organized outside the U.S.1
— Any profit on any unincorporated (flow through) business engaged in within the U.S.
would be taxed in the same manner as for corporations, regardless of the residency or
citizenship of the owner(s).What would not be Taxed:
— Capital gains on sales of any assets, tangible or otherwise, not located in the U.S. and
securities of corporations or other entities organized not in the U.S. and not listed or
traded on a securities exchange within the U.S.
— Any wage, salary, pension, dividend, interest, commission, service or other income paid
by a bank, corporation or other entity organized outside the U.S. to a person not resident
in the U.S.
— Any dividends paid to an individual resident in the U.S. from a corporation or other entity
organized outside the U.S. that is actively managed and/or controlled, individually or
jointly, by such individual to the extent such dividends are not derived from earnings of a
business engaged within the U.S.
— Any profit on any unincorporated (flow through) business engaged in outside the U.S.
would be taxed in the same manner as for corporations, regardless of the residency or
citizenship of the owner(s)….”