{"id":4741,"date":"2017-09-09T11:27:00","date_gmt":"2017-09-09T09:27:00","guid":{"rendered":"http:\/\/13.40.31.108\/?p=4741"},"modified":"2017-09-09T11:27:00","modified_gmt":"2017-09-09T09:27:00","slug":"us-republicans-lobby-to-scrap-fatca-and-tax-on-citizens-abroad","status":"publish","type":"post","link":"https:\/\/ustaxconsultants.es\/es\/us-republicans-lobby-to-scrap-fatca-and-tax-on-citizens-abroad\/","title":{"rendered":"US Republicans lobby to scrap Fatca and tax on citizens abroad"},"content":{"rendered":"
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The Republican National Committee (RNC) has urged president Donald Trump to replace citizenship-based taxation, and therefore scrap the Foreign Account Tax Compliance Act (Fatca), in his tax reform package.<\/p>\n<\/div>\n<\/div>\n

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The RNC approved a resolution supporting territorial taxation for individuals (TTFI) during its summer meeting, according to Republicans Overseas, an organisation that describes itself as keeping republicans overseas politically well-informed and providing a mechanism to direct policy concerns back to US political leaders.<\/p>\n

The Republican committee document states that TTFI is a \u201cfair, equitable and efficient taxation of nine million American citizens living overseas because it taxes each American\u2019s worldwide income only once in the country where she actually resides and receives government services\u201d.<\/p>\n

It added that the US is the \u201conly industrialised country in the world that taxes foreign-source income of its citizens living overseas by Citizenship-Based Taxation (CBT), resulting in double taxation\u201d.<\/p>\n

FATCA<\/strong><\/h3>\n

The committee also highlighted Fatca as having been implemented as a result of CBT. It said that the legislation, which forces overseas Americans to declare offshore assets to the Internal Revenue Services (IRS), has \u201cserious negative consequences\u201d.<\/p>\n

\u201cThe US should tax on the basis of information within the control of the US and its territories, and not require or depend on unconstitutional information sharing with other countries around the world,\u201d the RNC document said.<\/p>\n

Financial institutions have turned away or actively closed the accounts of US citizens as a result of FATCA, which can see the US withhold 30% of all transactions by non-compliant foreign financial institutions.<\/p>\n

In mid-August, the US Court of Appeals for the Sixth Circuit dismissed a legal challenge against Fatca<\/a> that involved US senator Rand Paul.<\/p>\n

Fundamentally wrong<\/strong><\/h3>\n

Vocal Fatca critic and deVere Group founder and chief executive Nigel Green, \u201cchampions the growing movement in the US and internationally to support territorial taxation and replace citizenship-based taxation in America\u201d, he told International Adviser<\/em>.<\/p>\n

\u201cCurrently, US citizens suffer arguably one of the worst tax regimes in the world.\u00a0It\u2019s high time that this draconian system was abolished and America joined the rest of the civilised world, which has recognised that residence and\/or territoriality are the only criteria upon which a fair income tax system should be based.<\/p>\n

\u201cThe tax regime of the US is not the global standard.\u00a0Why is this? Simple: it is fundamentally wrong to tax\u00a0people for their national identity,\u201d Green said.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Republican National Committee (RNC) has urged president Donald Trump to replace citizenship-based taxation, and therefore scrap the Foreign Account Tax Compliance Act (Fatca), in his tax reform package. The RNC approved a resolution supporting territorial taxation for individuals (TTFI) during its summer meeting, according to Republicans Overseas, an organisation that describes itself as keeping […]<\/p>\n","protected":false},"author":4,"featured_media":4742,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[25,23,24],"tags":[],"class_list":["post-4741","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fatca","category-irs","category-us-tax-return-1040-1040nr"],"acf":[],"_links":{"self":[{"href":"https:\/\/ustaxconsultants.es\/es\/wp-json\/wp\/v2\/posts\/4741","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ustaxconsultants.es\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ustaxconsultants.es\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ustaxconsultants.es\/es\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/ustaxconsultants.es\/es\/wp-json\/wp\/v2\/comments?post=4741"}],"version-history":[{"count":0,"href":"https:\/\/ustaxconsultants.es\/es\/wp-json\/wp\/v2\/posts\/4741\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ustaxconsultants.es\/es\/wp-json\/wp\/v2\/media\/4742"}],"wp:attachment":[{"href":"https:\/\/ustaxconsultants.es\/es\/wp-json\/wp\/v2\/media?parent=4741"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ustaxconsultants.es\/es\/wp-json\/wp\/v2\/categories?post=4741"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ustaxconsultants.es\/es\/wp-json\/wp\/v2\/tags?post=4741"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}