New organization fights for
excluding U.S. tax to expats

American Citizens Abroad, ACA, announced the enrollment in the Residence-Based Taxation, RBT Coalition, which is a group of organizations that support the adoption of Residence-based taxation.
 
“Historically all the Coalition partners have advocated for tax reform for Americans overseas," Charles Bruce, ACA Legal Counsel and Chairman of ACA’s sister organization ACA Global Foundation said. "Now ACA is joining forces with other organizations to demonstrate to the U.S. Congress and administration that residence-based taxation has broad support from the business, tax advocacy and professional community.”

According to the ACA, RBT Coalition is focus on the need for tax reform for Americans who are living and working overseas and to support the enactment of residence-based taxation.

"The RBT Coalition will present widely-accepted arguments, research and documentation in favor of residence-based taxation, making information available to the US government, the media and the public," ACA said in its statement. "All materials will be approved by members."

The U.S. taxes its citizens based on a regime often referred to as Citizenship-Based Taxation (CBT), which taxes U.S. citizens living abroad on all their income, including both U.S. and foreign earned or sourced income.

 
Residence-based taxation (RBT) would allow U.S. citizens living overseas to exclude from U.S. taxation foreign earned income (income not in connection to any economic activity in the United States), only taxing them on income earned or sourced in the U.S.
Currently, the RBT Coalition is made up of the Association of Americans Resident Overseas (AARO), American Citizens Abroad (ACA), Americans Overseas, Bright!Tax, Dunhill Financial, National Taxpayers Union (NTU), Swiss American Chamber of Commerce, and White Lighthouse Investment Management.

“ACA believes that tax legislation will be a priority with the incoming U.S. Congress and Administration and it is time for Representatives, Tax Committees and offices on Capitol Hill to consider the tax issues of Americans living and working overseas," Marylouise Serrato, ACA Executive Director said. "Information and work developed by individual RBT Coalition participants will be key for those in Washington, DC who are working on tax legislation and regulatory reform.”

Membership is open and will grow as groups come forward to identify themselves with this effort, ACA said.

The RBT Coalition will not posit any specific tax reform platforms or proposals but, as approved by members, will provide those responsible for tax reform with the data, information, background, and details as to why residence-based taxation should be enacted, according to ACA.

"RBT Coalition members will bring a wealth of knowledge not only on the tax and compliance issues of Americans living and working overseas but also information on the demographic and financial make-up of the community," ACA said in its statement.

More information about RBT Coalition can be reached at the organization web page.
 
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Should U.S. citizens living and working overseas exclude from U.S. taxation on foreign earned income?  We would like to know your thoughts on this story. Send your comments to news@amcostarica.com

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