Donald Trump has added another economic promise to his list as he steps up his efforts to secure votes ahead of November’s presidential election.
The Republican candidate has promised to end “double taxation” for Americans living abroad after previously promising to eliminate taxes on overtime, tips and social security payments for seniors.
“I support ending double taxation of Americans abroad,” Trump announced in a campaign statement.
U.S. citizens who live or travel to other countries are required to pay taxes on their entire income, even if they earned that money outside the United States.
But that person may also owe taxes to the country they live in, meaning their funds are taxed twice: once in the U.S. and once in the other country.
Donald Trump vowed to end ‘double taxation’ for Americans living abroad
Trump supporters cheered him at a rally Wednesday.
They are required to file income, estate and gift tax returns and “pay estimated tax in the same manner as those who reside in the United States,” according to the U.S. Internal Revenue Service.
The IRS also said that Americans living abroad do not have to pay U.S. taxes on the first $126,500 they earn and are eligible for some foreign tax cuts.
The United States has treaties with other countries that reduce fees and exemptions.
People who claim foreign tax credits can reduce the amount they owe in U.S. taxes and can avoid double taxes on money they earned in another county.
With his latest statement, Trump hoped to appeal to the millions of Americans living in other countries.
In 2022, around 4.4 million citizens live abroad, according to data from the Federal Voting Assistance Program.
Of those citizens, about 2.8 million were allowed to vote in their former states.
Trump hopes this proposal will specifically encourage Americans living in Israel to vote for him, a source familiar with the matter said. The Wall Street Journal.
The problem of double taxation mainly affects high-income earners and people with investments or retirement income.
Organizations like the Association of Americans Living Abroad have been pushing for tax policy that aligns with what Trump has proposed.
In a recent DailyMail.com poll, Trump took a lead over his Democratic opponent Kamala Harris.
‘A complex tax system, unique in the world, unfairly taxes American citizens abroad. “It imposes significant costs on tax preparation and reporting, often when no taxes are due, and often leads to double taxation,” the AARO said in a statement.
“To address these issues, our organizations advocate for ending citizenship-based taxation and aligning the United States with the universal practice of residency-based taxation.”
Trump also plans to extend his 2017 Tax Cuts and Jobs Act, which is set to expire in 2025.
Democratic presidential candidate Kamala Harris has also made her fair share of economic plans to attract voters ahead of the Nov. 5 election.
He said he wants to reduce taxes for the middle class. His plans include expanding tax credits for small businesses and increasing corporate taxes.
Harris has not commented directly on foreign taxation policies.
Kamala Harris’ economic plans focus on relief for the middle class
According to the Committee for a Responsible Federal Budget’s analysis, Trump’s economic plans would increase the federal debt by twice as much as Harris’s.
Trump’s plan would raise the country’s debt to a staggering $7.5 trillion by 2025. While Harris’ plan would raise the debt to about $3.5 trillion over the same period.
According to a recent DailyMail.com poll, Trump has widened his lead over Harris with a 58.8 percent victory to Harris’ 41.1 percent.
The latest polling data now suggests that Trump is on track to win 302 electoral college votes to Harris’ 236.
