The United States taxes on the basis of citizenship. This is sometimes referred to as citizenship-based taxation (CBT). CBT means that the United States taxes its citizens on their worldwide income regardless of where they live and earn their income. Residence-based taxation (RBT) taxes individuals based on where income is earned. By adopting residence-based taxation, US citizens living overseas who earn income outside of the United States or income unrelated to economic activity in the United States, would no longer be taxed on that income by the United States. Citizenship-based taxation is incompatible with the global economy of the 21st century where the tax policy of all other industrialized nations is based on residency and not nationality.
The RBT Coalition will not posit any tax reform platforms or proposals but, as approved by members, will provide those responsible for tax reform with the data, information, background and details as to why residence-based taxation (RBT) should be enacted. RBT Coalition members bring a wealth of knowledge not only on the tax and compliance issues of Americans living and working overseas, but also information on the demographic and financial makeup of the community. This information and data is invaluable to the Congressional Committees and Representatives in Washington, DC working on tax policy.
The Coalition will work individually and collectively to bring focus to RBT and to provide knowledge and research to advance residence-based taxation (RBT) in Washington, DC, with Congress, the media and the general public. Some RBT Coalition members already have established contacts with Congressional leadership and stakeholders in Washington, DC. Combining forces will demonstrate that the call for tax reform comes from a wide range of respected and established organizations representing the financial, investment and business communities as well as the community of Americans overseas. Please check back to our website for updates.
The Coalition looks forward to adding more organizations as the community learns about the importance of having broad support for RBT that includes business, community, and professional interests. Please contact us at info@rbtcoalition.org for more information about joining the Coalition.
