Former President Trump has expanded on a series of recent tax-cut promises to woo voters, promising to end so-called double taxation on Americans living overseas.
Americans residing abroad may be required to pay both U.S. income taxes and taxes in their country of residence.
Some features of the U.S. tax law are aimed at reducing what Trump calls double taxation, but the U.S. is the only major industrialized nation to tax expatriates in this way. .
“I support eliminating double taxation on Americans overseas,” President Trump said in a statement to Fox Business. “Let's unite to put America first. Register to vote and vote Republican to Make America Great Again!”
The president has not disclosed details of his proposal, including whether there would be restrictions on millionaires and billionaires from establishing residency in low-tax countries to avoid the IRS.
He also did not explain how potential tax revenue losses would be offset with spending cuts or alternative funding sources.
But his new tax plan was the first to be reported. wall street journalwas welcomed by Solomon Yue, chief executive of Republicans Abroad, an advocacy group for Americans living abroad.
“Republicans Abroad has been fighting for the rights of Americans overseas since its founding 10 years ago,” Yue said in a statement. “We have spoken to many politicians over the years who were sympathetic to the burden of double taxation, but none who were willing to take action. President Trump is fighting for the economic freedom of America's working men and women, whether they live in the United States or abroad.''
In recent weeks, President Trump has promised tax breaks on wage tips, Social Security benefits, and most recently, making interest on car loans tax deductible.
These promises appear to target a specific group of voters as the Republican candidate and Democratic Vice President Kamala Harris mount a fierce battle heading into Election Day, which is just over three weeks away.
These tax reductions are Tax Cuts and Jobs Act; Signature legislation enacted in 2017 lowers personal and corporate tax rates, increases the standard deduction and family tax credit, and eliminates some personal deductions for those who take itemized deductions, among other tax law changes. It has been established.
Key parts of the law are set to expire in 2025, sparking debate in Congress and on the campaign trail over whether the tax cuts should be extended.
An economic analysis of President Trump's previous tax cut proposals estimates that they would result in nearly $6 trillion in additional tax cuts. $10 trillion deficit The Associated Press reported that it lasted more than a decade.
President Trump has argued that these revenue losses can be offset with sweeping tariffs on foreign goods, but many economists believe that retaliatory tariffs from targeted countries could raise prices for U.S. businesses and consumers. It warns that there is.
Mark Goldwein, executive vice chairman of the Committee for a Responsible Federal Budget, told The Associated Press that President Trump's proposal for Americans abroad and auto loan borrowers would reduce tax revenue by an estimated $100 billion over the next 10 years. He said it was possible.
Democrats Abroad, a Democratic group representing Americans living in other countries, reacted skeptically to President Trump's double taxation proposal.
“Mr. Trump spent four years as president supporting Americans abroad and issues that are important to us. But he did not do that. Instead, he “It has created a harmful tax system that has driven small business owners out of business through repatriation taxes and GILTI taxes,” the group said in a statement. “And he's not going to address our challenges right now.”
Democrats Abroad pointed out that Trump has made statements linking votes from overseas Americans to his own unproven claims of election fraud, even as he takes overseas voters to court.
President Trump said on his platform, Truth Social, on September 23rd, “Democrats are talking about how hard they are working to get millions of votes from Americans living overseas. is preparing for fraud!”
He argued that efforts to make it easier for people overseas to vote would “dilute” the votes of military personnel, whom Trump believes support him more than Harris.
“Watch! Remember, if you vote illegally, you will go to jail,” he warned.
Democrats abroad accused President Trump of trying to intimidate voters.
“Trump's Project 2025 campaign is premised on stripping Americans of the rights and freedoms they enjoy. Now, the country that has denied this election and lost the popular vote twice has military personnel deployed overseas and seek to preemptively delegitimize civilian voters from voting,” said Martha McDevitt Pugh, International Chair of Democrats Abroad.
“That we are on President Trump's mind and that he perceives us as a threat to his victory is further evidence of the importance of overseas voters and overseas Democrats in mobilizing them.”
