Trump promises to end ‘double taxation’ on Americans abroad

Oct 10

Karah Rucker Reporter

By Karah Rucker (Reporter), Alex Delia (Producer), Ian Kennedy (Video Editor)

Former President Donald Trump pledged to eliminate filing U.S. taxes for Americans living abroad as part of his 2024 campaign tax reform platform. The proposal aims to end what is often referred to as “double taxation” for expatriates, a move that could simplify tax obligations for over 4 million U.S. citizens overseas.

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Currently, Americans living abroad must file income, estate and gift tax returns with the IRS, even if they pay taxes in another country. While some expatriates benefit from credits and exclusions, many still face complex and sometimes costly tax filings.

Former President Trump said Vice President Harris was "mentally impaired" when describing her handling of the southern border. — Getty Images

Trump’s proposal, which would require congressional approval, has sparked debate, with critics arguing it could encourage tax avoidance by wealthier individuals relocating to low-tax countries.

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Supporters believe it would reduce unnecessary paperwork and make life easier for ordinary Americans living overseas. A notable aspect of the current system is while it adds a lot of paperwork, it doesn’t necessarily add any additional financial burden. Expats currently get U.S. tax credits for taxes that they pay to foreign governments, and any income over $126,000 is exempt.

This promise is part of a broader series of tax cuts Trump is proposing, which also includes eliminating taxes on tipped wages, overtime, and Social Security benefits. Experts estimate the combined tax cuts could cost over $10 trillion over the next decade.

Tags: 2024 Elections, child tax credit, Democratic Party, Democrats, Donald Trump, Election, EV tax credit, Income tax, JD Vance, Joe Biden, Kamala Harris, Republicans, Tax cuts, Tax Fraud, Tax returns, Taxes, taxpayer funds, U.S. Congress

Karah Rucker

FORMER PRESIDENT DONALD TRUMP IS PLEDGING TO ELIMINATE WHAT HE CALLS ‘DOUBLE TAXATION’ ON AMERICANS LIVING ABROAD. THIS PROMISE COMES AS PART OF HIS BROADER PUSH TO REDUCE PERSONAL TAX BURDENS IF HE WINS A SECOND TERM IN THE 2024 ELECTION.

CURRENTLY, U-S CITIZENS LIVING OVERSEAS STILL NEED TO FILE INCOME, ESTATE AND GIFT TAX RETURNS WITH THE IRS. TRUMP’S PROPOSAL AIMS TO END THIS REQUIREMENT, A MOVE THAT COULD SIMPLIFY THE TAX OBLIGATIONS OF OVER 4 MILLION OF AMERICANS LIVING ABROAD AND POTENTIALLY LOWER THEIR TAX BILLS. OVER A MILLION OF THESE AMERICANS ALSO REPRESENT KEY SWING STATES.

HOWEVER, NOT EVERYONE IS CONVINCED. CRITICS WARN THE PLAN COULD ENCOURAGE WEALTHIER AMERICANS TO MOVE TO LOW-TAX COUNTRIES AND AVOID THEIR U-S TAX RESPONSIBILITIES ALTOGETHER. RIGHT NOW, AMERICAN EXPATRIATES CAN ALREADY TAKE ADVANTAGE OF TAX CREDITS AND EXCLUSIONS, BUT SOME STILL FACE SIGNIFICANT TAX LIABILITIES.

THIS PROPOSAL IS JUST ONE PART OF TRUMP’S SWEEPING TAX REFORM IDEAS, WHICH INCLUDE ELIMINATING TAXES ON OVERTIME, TIPPED WAGES AND SOCIAL SECURITY BENEFITS. EXPERTS ESTIMATE HIS TOTAL TAX PLAN COULD COST OVER 10 TRILLION DOLLARS IN THE NEXT DECADE. BUT WHETHER HE’LL BE ABLE TO IMPLEMENT THESE CHANGES WILL DEPEND HEAVILY ON CONGRESSIONAL APPROVAL.

A NOTABLE ASPECT OF THE CURRENT SYSTEM IS WHILE IT ADDS A LOT OF PAPERWORK… IT DOESN’T NECESSARILY MEAN ANY ADDITIONAL FINANCIAL BURDEN. EXPATS CURRENTLY GET U-S TAX CREDITS FOR TAXES THAT THEY PAY TO FOREIGN GOVERNMENTS… AND ANY INCOME OVER 126-THOUSAND IS EXEMPT.

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FOR STRAIGHT ARROW NEWS… I’M KARAH RUCKER.