A New/ Old Concept For An American: Perspective On Residency Based Taxation
Picture Courtesy: www.pixabay.com. Today's post is going into dig into details of a Bill proposed by Congressman Darin LaHood (R) in December 2024 and how it may affect you if you are a U.S. Citizen and long-term resident overseas. LaHood is currently the Chairman of the Ways and Means Committee. In my opinion this is an important development for Americans living overseas. We need to keep our eyes on this because many experts feel that there is a high likelihood of the Bill passing with the current composition of the Congress and Senate at this time. This bill proposes "Residency Based Taxation" (RBT) for American Citizens who are not residents of the United States. If you remember, United States Citizens and Permanent Residents (Green Card holders) are subject to Citizenship Based Taxation (CBT)- a system of taxation under which no matter where you live in the world, you are subject to U.S. taxation and need to file your Income Tax return. Even with...