A nonprofit focused on U.S. citizens living abroad has launched a fundraising campaign in favor of tax-law changes that would help them.
The American Citizens Abroad Global Foundation is raising money so that it can commission professional revenue estimates that it can use to show Congress that tax changes to help U.S. citizens living abroad would not add to the deficit.
Under current law, U.S. citizens have to pay U.S. taxes even if they live in other countries. American Citizens Abroad (ACA), the foundation's sister organization, has been advocating for the U.S. to move to a residence-based system of taxation for individuals. The group argues that the current system is complicated to administer and discourages American businesses from sending employees abroad.
“Residency-based taxation for individuals is a relatively straightforward exercise and does not risk ‘muddying the water’ for changes regarding corporate international taxation. There are no obvious roadblocks to undertaking this step,” foundation chairman Charles Bruce said in a news release Tuesday.
House Republicans are currently working on creating tax-reform legislation based off a blueprint released last year. The blueprint states that the House Ways and Means Committee "will consider the appropriate treatment of individuals living and working abroad in today’s globally integrated economy."
ACA Executive Director Marylouise Serrato said that her group's meetings with lawmakers' offices lead her to believe that that legislation that moves to residency-based taxation "is eminently doable.”