Former President Donald J. Trump said in a statement that he would seek to end the “double taxation” of Americans overseas.
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Former President Donald J. Trump said that, if elected, he would end the practice of imposing taxes on Americans who live abroad.
Former President Donald J. Trump suggested that he would try to reduce taxes for Americans living abroad, the latest in an expensive string of tax cuts he has promised to different voting groups during the presidential campaign.
Americans who live outside the United States must still file tax returns with the Internal Revenue Service. That means in some instances, Americans living abroad pay taxes to both the United States and a foreign government, creating so-called double taxation. Many other countries collect taxes from people living and working within their borders but not on their citizens living abroad.
In a statement, which was provided earlier to The Wall Street Journal, Mr. Trump said he would eliminate the practice. “I support ending the double taxation of overseas Americans!”
But, as with many of Mr. Trump’s campaign tax pledges, it was unclear what exactly he envisions changing. Americans living in other countries don’t always owe taxes both there and in the United States. They can already discount taxes paid to another government from their U.S. tax bill, and those making less than $126,500 don’t owe anything to the I.R.S.
Higher-income Americans living in countries with low taxes are more likely to owe additional taxes in the United States. Mr. Trump’s idea, depending on how it is ultimately drafted, could encourage wealthy Americans to move to tax havens overseas to avoid taxes.
During his campaign, Mr. Trump has expressed support for a wide variety of seemingly simple, but potentially far-reaching, tax cuts aimed at specific groups of voters. He has said Social Security benefits should no longer be taxed, a bid for support from retirees, and suggested that tipped income and overtime pay should not be taxed, proposals that he has framed as benefits for working Americans.
“Fellow Americans living abroad, your vote is more important than ever,” Mr. Trump said in the statement. “No matter where you are, your voice can make a difference.”
Mr. Trump’s campaign promises come on top of the Republican goal to extend many of the tax cuts from his signature legislative achievement while president, a 2017 tax law. Many of those tax cuts expire after 2025. The cost of continuing those cuts is significant, and together all of Mr. Trump’s plans could cost $7.5 trillion over 10 years, according to a nonpartisan budget group.
Mr. Trump has also repeatedly said he would raise tariffs on imports to the United States to pay for his tax cuts, which would effectively shift the country’s tax burden to lower-income Americans. Those Americans spend more of their money on consumer items that could get more expensive because of the tariffs.
Vice President Kamala Harris has attacked Mr. Trump’s tax plans, arguing that they would amount to a giveaway to the rich. She has pledged to raise taxes on corporations and Americans making more than $400,000 a year.
Andrew Duehren covers tax policy for The Times from Washington. More about Andrew Duehren
See more on: 2024 Elections: News, Polls and Analysis, Donald Trump
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Source: nytimes.com
