Ending Double Taxation: Donald Trump has pledged to end the double taxation of Americans living overseas. Currently, Americans are taxed on their worldwide income regardless of where they live, a system that differs from most countries that use residency-based taxation.
Residency-Based Taxation: The proposed change would align the U.S. tax system with the global standard of taxing individuals based on residency, meaning Americans would only pay income tax in the country where they live, work, and earn.
Broad Support: Advocacy groups like Tax Fairness for Americans Abroad and Republicans Overseas support the change, viewing it as a significant relief for millions of Americans living overseas. There is also bipartisan support for reform, but action has been limited due to lack of political will.
Complications in Implementation: Achieving the change will require amendments to the U.S. Tax Code, making it a complicated process that would require congressional cooperation.
I’ll go out on a limb and assume that it’s a reasonable, common-sense idea but because it came from Trump people/media will try to spin it otherwise?
Just like most things, he has no clue, no plan and no vision. Remember what he said about his health plan? He doesn’t have a plan, but “concepts of a plan”.
If you take Trump’s economic “plans” seriously, the budget impact is awful. But of course, most likely to be hollow promises to bait some undecided voters.
Would make FACTA dead in the water effectively since it’s all about getting the foreign banks to report on their American clients. If Americans are no longer taxed on worldwide income then no need for foreign banks to report under FATCA methinks.
No, I don’t think so. He is saying he wants to revoke a long-standing rule requiring US non-resident citizens to pay US federal tax. FATCA has other purposes providing a wealth of information to the USG.
