Former President Trump is promising to end so-called double taxation of Americans living abroad, expanding on his recent promises of tax breaks in an effort to woo voters.
Americans who live abroad may have to pay both U.S. income taxes and taxes in the country in which they live.
Some features of the US tax code are intended to reduce what Trump calls double taxation, but the US is unique among major developed countries in taxing its immigrants in this way.
“I support ending double taxation on foreign Americans,” Trump said in a statement to Fox Business. “Let’s come together to put America first. Register to vote and vote Republican to Make America Great Again!”
The president was not clear on the details of his proposal, including whether there would be a limit so that millionaires and billionaires do not set up residence in low-tax countries to avoid the IRS.
Nor did he outline how he would offset the potential tax revenue deficit through spending cuts or alternative sources of revenue.
But his new tax proposal, first reported wall street journalSolomon Yu, chief executive of Republicans Overseas, an advocacy group for Americans living abroad, welcomed him.
“Republicans Overseas has been fighting for the rights of Americans abroad since its founding ten years ago,” Yu said in a statement. “We have spoken to many politicians over the past few years, and although they have expressed sympathy with the burden of double taxation, very few have been willing to take action. President Trump fights for the economic freedom of America’s working men and women, whether they live stateside or abroad.
In recent weeks Trump has promised to cut taxes on payroll tips, Social Security benefits and, most recently, make interest on car loans tax-deductible.
The promises appear to be targeted at specific voter groups as Republican nominees and Democratic Vice President Kamala Harris head toward Election Day in just over three weeks.
These tax breaks will build on Tax Cuts and Jobs Act, Signed 2017 legislation that lowered individual and corporate tax rates, increased the standard deduction and family tax credit and eliminated many personal exemptions for those taking itemized deductions, along with other changes to the tax code.
Key parts of the law are set to expire in 2025, which has sparked debate in Congress and on the campaign trail over whether the tax cuts should be extended.
Economic analysis of Trump’s previous tax cut ideas estimated that they would add about $6 trillion 10 trillion dollar deficit Over 10 years, the Associated Press reported.
Trump has insisted that these revenue losses can be offset by broad tariffs on foreign goods, but many economists have warned that retaliatory tariffs from targeted countries could increase prices on American businesses and consumers.
Mark Goldwein, senior vice chairman of the Committee for a Responsible Federal Budget, told the Associated Press that Trump’s proposals could reduce tax revenues for Americans abroad and auto loan borrowers by an estimated $100 billion over the next decade.
Democrats Abroad, a Democratic group that represents Americans living in other countries, reacted to Trump’s double tax proposal with skepticism.
“Trump has had four years as president to support Americans abroad and support the issues that are important to us. However, he did not do so. Instead they created a harmful tax regime for Americans abroad, driving small business owners out of business through repatriation and GILTI taxes,” the group said in a statement. “And he will no longer solve our challenges.”
Democrats Abroad observed that even as Trump courts immigrant voters, he has made statements linking the votes of Americans abroad to his unproven claims of election fraud.
“Democrats talk about how hard they are working to get millions of votes from Americans living abroad,” Trump wrote on his Truth social platform on September 23. “In fact, they’re getting ready to cheat!”
He asserted that efforts to make it easier for citizens abroad to vote would “dilute” the votes of military service members, whom Trump believes favor him over Harris.
“WATCH! Remember, if you vote illegally,” he warned, “you are going to jail.”
Democrats Abroad accused Trump of attempting to intimidate voters.
“Trump’s Project 2025 campaign is based on taking away the rights and freedoms that Americans enjoy. Now by denying this election, the two-time popular vote loser is attempting to illegally delegitimize the votes of military and civilian voters deployed abroad,” said Martha McDevitt-Pugh, president of Democrats Abroad International.
“That we are on Trump’s mind, and that he considers us a threat to his victory, is further evidence of the critical importance of overseas voters and of Democrats abroad in mobilizing them.”
