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Israel based US expats clamour for citizen based taxation reform
| Published: | 5 Oct at 6 PM |
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Regardless of whether they voted for Trump or not, the majority of US expats resident in Israel are hoping and praying the upcoming tax reform bill will end their unfair tax burdens.
American Israelis, including the ‘Accidental Americans’ who inherited US citizenship, are full on in the fight to repeal Citizenship-Based Taxation and bring in Territory Based Taxation for Individuals. It’s the one ‘repeal and replace’ issue involving the Trump presidency they’d love to see come true.
Overseas global advocate Keith Redmond is is one of the leaders of the initiative aimed at expat tax reform. If the campaign is successful, the results will change the lives of the huge number of US expats living across the world, saving them from the onerous duty of reporting and paying tax on income generated outside the USA borders. Of course, tax would still be payable on earnings in their countries of residence, but the benefits of not having to deal with the once-a-year nightmare are all that matters.
A recent New York Times article reported Trump’s tax proposals include the aim of ending worldwide taxation for US multinationals, but doesn’t mentions individual expats living and working outside the country. Expats believe the provision must also apply to every expat American, no matter where he/she is located. Lobbying, an online petition and letters to congressional lawmakers and Trump Trump have been organised by Republicans Overseas International, the expat-aimed organisation which has represented Americans abroad for decades.
According to Mark Zell, the Jerusalem-based vice president of ROI, changes to the unfair law are long overdue. He notes the USA is up there with North Korea and Eritrea as the only three world countries in which taxation is citizenship-based. He has no problem with paying tax on US-derived income, but is vociferous in his attacks on the present law. One American-Israeli freelancer reported her income is reduced drastically by the unfair tax system, as she’s paying a 15.3 per cent Social Secutiry tax on top of her citizen-based tax bill as well as needing to fund two accountant to ensure she doesn’t make an expensive mistake.
American Israelis, including the ‘Accidental Americans’ who inherited US citizenship, are full on in the fight to repeal Citizenship-Based Taxation and bring in Territory Based Taxation for Individuals. It’s the one ‘repeal and replace’ issue involving the Trump presidency they’d love to see come true.
Overseas global advocate Keith Redmond is is one of the leaders of the initiative aimed at expat tax reform. If the campaign is successful, the results will change the lives of the huge number of US expats living across the world, saving them from the onerous duty of reporting and paying tax on income generated outside the USA borders. Of course, tax would still be payable on earnings in their countries of residence, but the benefits of not having to deal with the once-a-year nightmare are all that matters.
A recent New York Times article reported Trump’s tax proposals include the aim of ending worldwide taxation for US multinationals, but doesn’t mentions individual expats living and working outside the country. Expats believe the provision must also apply to every expat American, no matter where he/she is located. Lobbying, an online petition and letters to congressional lawmakers and Trump Trump have been organised by Republicans Overseas International, the expat-aimed organisation which has represented Americans abroad for decades.
According to Mark Zell, the Jerusalem-based vice president of ROI, changes to the unfair law are long overdue. He notes the USA is up there with North Korea and Eritrea as the only three world countries in which taxation is citizenship-based. He has no problem with paying tax on US-derived income, but is vociferous in his attacks on the present law. One American-Israeli freelancer reported her income is reduced drastically by the unfair tax system, as she’s paying a 15.3 per cent Social Secutiry tax on top of her citizen-based tax bill as well as needing to fund two accountant to ensure she doesn’t make an expensive mistake.
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