|
|||
Published
on Monday, October 14,
2024
By James Brodell
Donald
Trump, the ex-president and current
Republican presidential candidate,
just promised to eliminate what
he called
double taxation of U.S. taxpayers
abroad.
"You've
been wanting this for years, and nobody
has listened to you, and you deserve it,
and I'm
going to do it,"
said Trump in making his
double taxation announcement. "It's the
right thing to do, and no American leader
has ever been willing to stand up and
commit to you the way that
I have on many
things, but this is a
very important
element for your safety, security, and,
frankly, for your wallet."
U.S.
citizens and permanent residents now must
pay U.S. taxes on some foreign income as
well as
taxes levied by whatever country in which
they live under current law.
Trump
made his announcement, in
part via
social media Friday, but he was not clear
as to exactly
what was being
pledged.
Earlier,
both Trump and Kamala Harris, the current
vice president and Democratic candidate
for president, both pledged to end taxes
on tip income for U.S. taxpayers. Trump
also promised to eliminate taxes on
overtime pay. Harris
said she would increase Social Security
coverage and target high-wage earners
with higher rates.
The double taxes U.S. residents overseas pay has long been a target of expat criticism. Many politicians, including Trump, have said the tax code provides a penalty for U.S. workers overseas. Some Democratic lawmakers agree.
Not all U.S. citizens are taxed twice. Overseas residents benefit from an annual foreign income tax exclusion, which for tax year 2023 is $120,000, according to the Internal Revenue Service. Of course, many U.S. expats in Costa Rica receive Social Security payments, and they would benefit if a Trump administration manages to get his tax pledge through Congress. Trump's brief announcement left many questions unanswered. Among these: 1. Does the promise involve just earned income or does Trump also plan to waive taxes on capital gains, estates, gifts and digital transactions? U.S. expats now are supposed to pay these taxes, just like individuals in the States, just as when they sell an overseas property for a profit. 2. Does the promise cover U.S. government employees who now pay taxes even if overseas? 3. Would Trump also waive taxes on private and public pensions and 401K annuity payments as well as Social Security?
------------------ James Brodell, A.M. Costa Rica editor emeritus, is a retired journalism professor and a New York Metro area newspaper editor. He has studied U.S. open records and open meeting laws extensively. He can be reached at JBrodell@jamesbrodell.com or Jay@amcostarica.com.
Professional's services and business U.S. Income
Tax & Accounting
Nonprofit Organizations
Car Rental
Sports
Academy
Dental Services
|