U.S. Representative Darin LaHood introduces the Residence-Based Taxation for Americans Abroad Act

WASHINGTON - Dec. 20, 2024 - PRLog -- U.S. Representative Darin LaHood introduces the Residence-Based Taxation for Americans Abroad Act.

PARIS, FRANCE:  Association of Americans Resident Overseas (AARO), reports that U.S. Representative Darin LaHood (R-IL), a member of the House Committee on Ways and Means, introduced the Residence-Based Taxation for Americans Abroad Act, a bill that would permit Americans living overseas to elect to become part of a residence-based taxation system, in which the United States would no longer tax income earned outside the United States.

Today, the United States is the only major country that uses citizenship-based taxation (CBT), a system that levies taxes on individuals' worldwide income regardless of where they live. For years AARO has been working with other associations on, and advocating for, ending CBT and aligning the United States with the universal practice of residency-based taxation.

AARO President Doris Speer and Board member Laura Snyder are Board members of the Tax Fairness for Americans Abroad (TFFAA), a U.S. non-profit organization whose Board members are recognized by Rep. LaHood (https://lahood.house.gov/2024/12/lahood-introduces-bill-t...)  as having deep personal experience navigating the pitfalls of the U.S. tax and financial services laws that affect Americans abroad. This team and its advisors worked closely with Rep. LaHood's office in the drafting of the Act.

This introduction in the 118^th Congress provides an opportunity for stakeholders and Americans currently living abroad to provide feedback ahead of reintroduction in the 119th Congress. Rep. LaHood is hopeful the bill can be considered in a reconciliation package next year. Text for the bill can be found here (https://iqconnect.house.gov/iqextranet/iqClickTrk.aspx?&a...).

Doris Speer, President of AARO, said "We are pleased to see that Representative LaHood understands the challenges facing Americans abroad in taxation and we greatly appreciate and applaud his efforts to rectify the situation. We look forward to residency-based taxation finally becoming a reality in the 119^th Congress."

About AARO: The Association of Americans Resident Overseas (AARO), founded in 1973 and headquartered in Paris, is a global, non-partisan non-profit association with members in over 40 countries. AARO builds awareness in the U.S. of the issues affecting Americans overseas and the inequities regarding their rights and seeks fair treatment by the U.S. government for Americans abroad. AARO also informs its members of the issues affecting them and of their rights and responsibilities as American citizens. For more information, please email us at contact@aaro.org