Expats face big increase in tax payments
By Lauren Foster in New York
Published: May 10 2003 5:00
The proposed repeal of a tax concession for Americans working overseas would increase expatriates' tax bills by an average of $1,000 a year, tax experts said yesterday.
Unlike most countries, the US taxes its citizens on their worldwide income regardless of where they live, even if they are resident in another country that also taxes them on their worldwide income.
Andy Sundberg, founder and director of American Citizens Abroad, said double taxation of overseas Americans was "an economic weapon of mass destruction".
The net effect of a repeal of the exclusion, he said, would be that many people would end up with effective tax rates higher than the top rate in either the US or the country where they lived and work.
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