Democrats Abroad welcomed the introduction of the Residence-Based Taxation for Americans Abroad Act, introduced by Congressman Darin LaHood (R-IL-16).
This bill, developed with input from Democrats Abroad and other advocacy groups, aims to alleviate the tax burdens faced by low- and middle-income Americans living overseas, who often struggle with complex filing requirements and financial access discrimination. Current U.S. tax policies designed to prevent tax evasion have unintentionally impacted these citizens, sometimes leading them to consider renouncing their citizenship to escape the burden.
Rebecca Lammers, Chair of the Democrats Abroad Taxation Task Force, praised the organization’s role in highlighting these issues and developing policy solutions. Martha McDevitt-Pugh, Chair of Democrats Abroad, noted that the bill includes safeguards to prevent misuse by tax evaders and expressed hope that its provisions will influence tax legislation in 2025. While the bill won’t be voted on in the current Congress, it represents a significant step toward offering Americans abroad the choice of a fairer, residency-based taxation system.