|
MANY STUDIES HAVE SHOWN HOW HARMFUL OUR TAXATION OF OVERSEAS AMERICANS HAS BEEN: During the last three decades, a number of studies have explained how devastating the singling out of overseas Americans for double taxation has been to US trade. For example, in 1979, during
the Carter Administration, the President's Export Council issued a report of its Task Force to Study the Tax Treatment of Americans Working Overseas.This report concluded that, "Americans are being taxed out
of competition in overseas markets.
The result is a sharp loss in the United States' share of overseas business volume in vital economic sectors. The current situation contributes to our negative balance of payments, a loss of US jobs to our competitors, and the decline in US presence and prestige abroad."
To remedy the situation, the President's Export Council recommended, inter alia that "Work should begin immediately to encourage enactment of a new tax law to put Americans working overseas on the same tax
footing as citizens from competing industrial nations." CONGRESS IS TRYING TO GET THE MESSAGE: In language included into the House of Representatives Conference Report 103-482on the Foreign Relations Authorization Act, Fiscal Years 1994 and 1995, which was adopted by the full
Congress and recently became law, the Congress said that everything possible should be done to enable American Citizens abroad to compete on a "most favored competitor basis". The full wording of this
admonition, and request to the Administration for a thorough review of US laws and regulations that may impede the ability of American citizens abroad to compete in world markets on a level playing field with citizens
of other nations, is as follows: "The committee of conference recognizes the contributions that private US citizens living and working abroad make to the promotion and protection of the interests of the United
States throughout the world, and in particular, their vital role in making the United States more competitive in the world economy. To ensure that everything possible is being done to enable Americans citizens abroad to
compete on a most favored competitor basis, the committee of conference urges the Department of State to undertake, in cooperation with the other relevant Departments of the US Government and with the active
participation of the overseas American community, a review of US laws and regulations that may impede the ability of American citizens abroad to compete in world markets with citizens of other nations on a level playing
field. The committee of conference further believes that a process should be established so that American citizens abroad can contribute their ideas and
suggestions for improving the promotion and protection of the interests of the United States throughout the world. The committee of conference urges the Department of State to, consistent with available personnel and
resources, consult American citizens abroad at embassy and consulate locations."
What to do |
|