For Immediate Release
Tuesday, May 13, 2003
Senate Tax Bill Raises Taxes on Americans
Working Overseas, Harms U.S. Competitiveness
Washington, DC (May 13, 2003) – The Center for Freedom and Prosperity today criticized the Senate Finance Committee for raising taxes on Americans who live and work overseas. By eliminating
the so-called "Section 911 exclusion," the Finance Committee tax bill will force many Americans to pay a second layer of tax to the IRS on incomes under $80,000 – even though that income is earned – and subject to
tax – in other nations.
Andrew F. Quinlan, President of the Center, stated that, "It is bad policy to tax Americans who live and work overseas. Unfortunately, instead of fixing the problem by protecting all
overseas income from double-taxation, the Senate Finance Committee has made the tax code less competitive by eliminating the protections afforded by Section 911."
Heritage Foundation tax expert Daniel J. Mitchell commented that, "The United States is the only industrialized nation that taxes its overseas workforce. Even countries like France and
Sweden don't make this mistake. By making the law even more punitive, the Senate Finance Committee will increase unemployment, reduce American exports, and make it more difficult for U.S.-based companies to compete
in the global economy."
Veronique de Rugy of the Cato Institute added, "There is a reason why almost no governments tax citizens who live and work in other nations. Taxing overseas income is fundamentally
inconsistent with sound tax policy. Gutting Section 911 puts America in the same category as Jamaica and the Philippines."
The Center for Freedom and Prosperity also announced that it has launched a major initiative to defeat the Senate's misguided Section 911 legislation. According to Quinlan, "The Coalition
for Tax Competition will be beating down doors on Capitol Hill to explain why the Finance Committee proposal is bad news for America."
For additional comments:
Andrew Quinlan can be reached at 202-285-0244, firstname.lastname@example.org
Dan Mitchell can be reached at 202-608-6224, email@example.com
Veronique de Rugy can be reached at 202-842-0200, firstname.lastname@example.org
Center for Freedom and Prosperity
P.O. Box 10882Alexandria, Virginia 22310