Trump promises to exempt Americans from income tax abroad

According to Bloomberg, former President Trump’s campaign pledge could simplify tax obligations for about 9 million Americans living abroad. Under US law, people living or residing abroad are responsible for filing and paying taxes to the US Internal Revenue Service (IRS). This does not include taxes that Americans may pay in the country where they live.

Former US President Donald Trump held a campaign rally in Pennsylvania (USA) on October 9, 2024

"I support eliminating double taxation for Americans living abroad. Let's put America first. Register to vote and vote Republican," Trump said in a message to voters living abroad.

According to the South China Morning Post , current US tax law requires all foreigners to file tax returns with the IRS. If this step is completed, Americans living abroad will be eligible for certain privileges such as exemption from personal income tax. In addition, Americans living abroad with income of $126,500 or less do not have to pay any taxes to the US government .

However, advocates for changing the tax policy for Americans abroad say current IRS regulations are one reason why many people renounce their U.S. citizenship each year. These regulations mean that high-income Americans abroad often face tax bills in the United States.

Former President Trump's plan would have allowed wealthy Americans to move to low-tax countries and avoid any tax liability to the US government.

Tariffs are a centerpiece of Trump’s economic plans. The pledge to exempt Americans from paying taxes abroad is the latest in a series of Trump plans to cut personal tax bills. Former President Trump has also offered to exempt tips, overtime and Social Security benefits.

Republican candidate Trump has also pledged to push for a reduction in the corporate tax rate from 21% to 15%, and only for companies that manufacture in the US. Trump has threatened to impose high import tariffs on US farm machinery maker Deere & Co if the company moves production to Mexico.

Source: https://thanhnien.vn/ong-trump-hua-mien-thue-thu-nhap-cua-nguoi-my-o-nuoc-ngoai-185241010170012824.htm