Please include the RNC’s Resolution on Territorial Taxation for Individuals into the Tax Reform Package currently under review by the House Ways and Means Committee and the Senate Finance Committee.
The United States is the only developed country that implements a system of citizenship based taxation (CBT) which requires overseas Americans to pay taxes both to their host country and to the United States. This system creates huge complexity and inequity due to the overlapping tax systems being applied to any American living overseas.
Territorial Taxation for Individuals is an America first platform:
• Territorial Taxation for Individuals is tax-revenue positive because it eliminates current loopholes that allow wealthy foreigners not resident in the United States to generate substantial income in the United States without paying their fair share of tax Under the current tax system, wealthy foreigners can buy and sell businesses and assets in the United States and invest in stocks and bonds and pay little or no tax on the gains.
• Territorial Taxation for Individuals would allow for an increase of American exports. Overseas Americans are the most effective advocates for and exporters of American-made goods and services. However, due to CBT, Americans working overseas are at least 35% more expensive to hire than their foreign counterparts. Territorial Taxation would make employing Americans oversea more affordable, and more Americans working overseas will lead to more exports of American goods and services. An increase in American exports leads to more American jobs at home in America as well.
• Territorial Taxation for Individuals will attract skilled immigration to the U.S. and support the RAISE ACT. Worldwide Taxation inhibits skilled immigration to the U.S. as doing so has serious tax implications for these individuals’ foreign businesses and income. Territorial Taxation will draw skilled immigrants who can then recreate their business successes within the US and create more American jobs. Without addressing the worldwide tax implications for skilled immigrants, the United States will not be able to effectively compete in the global marketplace for top talent. Without addressing the worldwide tax implications, any renewed push for skilled immigration will encounter very significant challenges.
• Territorial Taxation for Individuals would end the discriminatory costs of tax compliance on overseas Americans.Overseas Americans pay extremely high costs to file their American tax returns as a result of CBT and FATCA (‘Foreign Account Tax Compliance Act’).
Territorial Taxation for Individuals should be included in the Tax Reform Package for the benefit of the United States and for all its citizens, including those Americans living overseas.
Thank you for considering this petition.
