US expat groups vow to continue fight to end citizenship-based tax regime, repeal FATCA

Despite the efforts, too small an interest group, and not domestically-based, to effect change to date:

After the US Senate voted early on Saturday morning to approve a version of a major tax reform bill that failed to include certain fiercely-fought-for changes that would have benefited expatriate Americans, spokespeople for some of the organisations that lobbied on behalf of these changes said they didn’t regard the battle as over – and that in any event, the fight would go on.

They also stressed that much had been achieved in terms of educating Americans at home and abroad to the issues, and organising and building groups that will continue to work for a change. Said Marylouise Serrato, executive director of the American Citizens Abroad, one of the organisations at the centre of the campaign: “Thanks to everyone’s efforts, the awareness and interest in the topic of residency-based/territorial taxation for Americans overseas is the highest its ever been.”

As reported,  the ACA, along with such other organisations as the Republicans Overseas, the Democrats Abroad, Americans for Tax Reform, the Heritage Foundation and a number of American chambers of commerce have fought hard for months to convince US lawmakers to do away with the current US system of citizenship-based taxation.

Some of these and others, including the Campaign to Repeal FATCA, and certain members of Congress such as Republican Senator Rand Paul of Kentucky, have been campaigning for the US to get rid of the Foreign Account Tax Compliance Act, which has made life difficult for expatriate Americans since it was signed into law by president Obama in 2010.

Saturday’s Senate vote saw 51 Republican lawmakers vote to approve the Senate version of the so-called Tax Cuts and Jobs Act, and 49 senators – all Democrats – voting against it.  Neither a proposal to replace the current citizenship-based tax regime nor one that would have called for the repeal  of FATCA was included in the version that was passed, even though, as reported, such key lawmakers as the Republican head of the House Ways and Means committee, Kevin Brady, had publicly indicated that Washington officials were taking “seriously” the call for a shift away from the citizenship-based income tax system.

via US expat groups vow to continue fight to end citizenship-based tax regime, repeal FATCA

About Andrew
Andrew blogs and tweets public policy issues, particularly the relationship between the political and bureaucratic levels, citizenship and multiculturalism. His latest book, Policy Arrogance or Innocent Bias, recounts his experience as a senior public servant in this area.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: