Former President Trump is promising to end the so-called double taxation of Americans living abroad, expanding on his recent string of tax break promises in an effort to woo voters.
Americans who live abroad can be required to pay both U.S. income taxes and taxes in whichever country they reside.
Some features of the U.S. tax code are intended to mitigate what Trump calls double taxation, but the U.S. is unique among major developed countries in taxing its expats in this manner.
“I support ENDING the Double Taxation of overseas Americans,” Trump said in a statement to FOX Business. “Let’s put America First, together. Register to Vote, and vote Republican to, MAKE AMERICA GREAT AGAIN!”
The president was not clear on the details of his proposal, including whether there would be limits so millionaires and billionaires do not establish residency in low-tax countries to dodge the IRS.
Neither did he outline how he would offset potential tax revenue losses with spending cuts or alternative sources of revenue.
But his new tax proposal, first reported by The Wall Street Journal, was welcomed by Solomon Yue, the chief executive of Republicans Overseas, a group that advocates for Americans living abroad.
“Republicans Overseas has been fighting for the rights of Americans abroad since its inception ten years ago,” Yue said in a statement. “We have spoken to many politicians over the years, and while they sympathized with the burden of double taxation, very few have been willing to act. President Trump fights for the economic freedom of America’s working men and women, whether they live stateside or abroad.”
Trump in recent weeks has promised to slash taxes on wage tips, Social Security benefits and, most recently, to make interest on car loans tax-deductible.
The promises appear targeted at specific voter blocs as the Republican nominee and Democratic Vice President Kamala Harris barrel towards an Election Day showdown in just over three weeks.
These tax breaks would build upon the Tax Cuts and Jobs Act, the signature 2017 law that lowered individual and corporate tax rates, increased the standard deduction and family tax credits and eliminated several personal exemptions for those who take itemized deductions, among other changes to the tax code.
Major portions of the law are set to expire in 2025, which has ignited debate in Congress and on the campaign trail over whether the tax cuts should be extended.
Economic analyses of Trump’s previous tax cut ideas estimated they would add nearly $6 trillion and $10 trillion to the deficit over 10 years, The Associated Press reported.
Trump has insisted these revenue losses can be offset with sweeping tariffs on foreign goods, but many economists warn that retaliatory tariffs from targeted countries could raise prices on American businesses and consumers.
Marc Goldwein, senior vice president at the Committee for a Responsible Federal Budget, told The Associated Press that Trump’s proposals for Americans abroad and auto loan borrowers could reduce tax revenues by an estimated $100 billion in the next decade.
Democrats Abroad, a Democratic group that represents Americans living in other countries, reacted to Trump’s double tax proposal with skepticism.
“Trump had four years as President to support Americans abroad and the issues that matter to us. However, he didn’t. Instead he created harmful tax regimens for Americans abroad, putting small business owners out of business through the Repatriation and GILTI taxes,” the group said in a statement. “And he won’t address our challenges now.”
Democrats Abroad observed that even as Trump courts expatriated voters, he has made statements tying votes from Americans overseas to his unproven claims of election fraud.
“The Democrats are talking about how they’re working so hard to get millions of votes from Americans living overseas,” Trump wrote on his Truth Social platform on Sept. 23. “Actually, they are getting ready to CHEAT!”
He asserted that efforts to make it easier for citizens abroad to vote would “dilute” the votes of military service members, who Trump believes support him over Harris.
“WATCH! Remember, IF YOU VOTE ILLEGALLY,” he warned, “YOU’RE GOING TO JAIL.”
Democrats Abroad accused Trump of attempting to intimidate and threaten voters.
“Trump’s Project 2025 campaign is premised on stripping away the rights and freedoms that Americans enjoy. Now this election denying, two-time popular vote loser is attempting to preemptively delegitimize the votes of deployed military and civilian voters abroad,” said Democrats Abroad International Chair Martha McDevitt-Pugh.
“That we’re in Trump’s head, and he perceives us as a threat to his scraping a win, is yet more evidence of the critical importance of overseas voters and Democrats Abroad, which mobilizes them.”
Credit: Source link
