Trump Pledges to End ‘Double Taxation’ of Americans Abroad
The idea is the latest from the GOP nominee that goes beyond extending the 2017 tax law
“… The U.S. has an unusual system for taxing its citizens on their total income regardless of where they earned it and where they live, making America alone among major countries with such a rule. Other countries use systems that base taxation on where people live. The U.S. policy dates back to the 1860s and the income tax created to finance the Civil War.
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Essentially, an American living in Paris would have tax obligations to both France and the U.S., though the U.S. tax code already contains features meant to mitigate double taxation. A French citizen residing in New York typically wouldn’t owe France any taxes on U.S. income.
“I support ending the double taxation of overseas Americans,” Trump said in a statement to The Wall Street Journal.
Like his prior campaign ideas to eliminate
taxes on tips, Social Security benefits and
overtime pay, Trump’s latest tax-policy promise goes beyond extension of his expiring 2017 tax cuts and the ideas he pushed during his first term as president, and it is aimed at a targeted demographic.
A narrow policy shift could eliminate a frustrating and unique burden for Americans abroad, especially those with higher incomes and investments who owe U.S. taxes on their worldwide income on top of taxes they pay where they live. That
can be particularly annoying for so-called accidental Americans, who have citizenship because they were born in the U.S. but have few ties to the country. …”
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So kids of Russian Oligarchs born in the U.S. as a result of citizenship tourism solely to obtain that citizenship wouldn’t be “annoyed” by paying US taxes as the pursue their international oligarch ventures? Cool. OTOH, they could renounce their “accidental” US citizenship if it is so annoying.