Center for Freedom and Prosperity
For Immediate Release
Monday, July 31, 2006
Rep. Chocola Seeks Section 911 Reform to
Level the Playing Field for Americans
Living and Working Abroad
(Washington, DC, Monday, July 31, 2006) – U.S. Representative Chris Chocola of Indiana, along with 16 colleagues, introduced the Working American Competitiveness Act (H.R. 5986). The legislation will eliminate a form of double-taxation imposed on U.S. citizens who live and work abroad and level the playing field so Americans can compete with other workers from around the world.
Several members of the Coalition for Tax Competition applauded Congressman Chocola for his leadership.
"Overseas Americans greatly benefit the United States by earning market share for goods and services," commented Andrew Quinlan, president of the Center for Freedom and Prosperity. "It is good economics and common sense to remove the punitive double taxation on
these productive citizens. The Center for Freedom and Prosperity applauds Congressman Chocola's leadership and looks forward to working with him to enact this important piece of legislation" added Quinlan.
The Chocola legislation (H.R. 5986) is needed because the United States is among the tiny handful of nations that imposes double-taxation on the labor income that individuals earn in other nations – even if the U.S. citizen is a full-time resident of the foreign jurisdiction. Yet since the "foreign-source" income of U.S. citizens already is subject to all applicable taxes that exist in other jurisdictions (just as the United States taxes foreigners who live and work in America), an additional layer of U.S. tax is a form of double-taxation – thus violating one of the most important principles of good tax policy. Every other industrialized country in the world taxes only income earned inside national borders – the common-sense principle of "territorial taxation."
Rep. Chocola is joined by 16 House colleagues as original co-sponsors: Reps. Herger, Hart, Ryan, Weller, English, Souder, Barrett, Campbell, Gingrey, Gutknecht, Kuhl, Flake,
Pitts, Pence, Paul, and Radanovich. Five of the cosponsors, Herger, Hart, Ryan, Weller, and English, serve with Rep. Chocola on the
Ways & Means Committee.
Note: Senator Jim DeMint (R-SC) introduced the Senate version – S. 3496 – on June 13, 2006.
Additional comments on the Chocola legislation by Coalition for Tax Competition Members:
Karen Kerrigan, President & CEO, Small Business & Entrepreneurship Council ~ "We strongly endorse Congressman Chocola's efforts to improve the tax code and help Americans compete on a level playing field with citizens of other nations."
Grover Norquist, President, Americans for Tax Reform ~ "American
tax policy continues to thwart our nation's international competitiveness. Taxing workers income and corporate profits earned outside the United States provides the incentive for more capital being invested
overseas. Congress should immediately repeal any taxation of foreign earned income for U.S. workers."
Kristina Rasmussen, Senior Government Affairs Manager, National Taxpayers Union ~ "Americans going abroad to work shouldn't have to make extra room in their suitcases for the tax collector. Senator DeMint and Representative Chocola deserve the gratitude of all workers in upholding the principle that the same income should only be taxed once."
Representatives of think tanks are unable to endorse legislation, but did comment on the economic impact of America's punitive tax treatment of overseas Americans:
Daniel Mitchell, The Heritage Foundation ~ "Worldwide taxation is an anachronism that undermines U.S. competitiveness in a globalized economy. Even high-tax welfare states like France, Germany, and Sweden have territorial tax regimes so that their citizens can live and work abroad without being taxed by two jurisdictions."
Veronique de Rugy, American Enterprise Institute ~ "Even though I am a citizen of one of the world's most tax-aholic countries, I am not taxed by France on my labor income in the United States. It is ironic that American taxpayers living and working abroad are treated much worse by the U.S. government."
For additional information -- Coalition for Tax Competition's Dedicated Section 911 Reform Web Page:
For additional comments:
Andrew Quinlan can be reached at 202-285-0244, firstname.lastname@example.org
Karen Kerrigan can be reached at 202-785-0238, email@example.com
Grover Norquist can be reached at 202-785-0266, firstname.lastname@example.org
Kristina Rasmussen can be reached at 703.683.5700, email@example.com
Dan Mitchell can be reached at 202-608-6224, firstname.lastname@example.org
Veronique de Rugy can be reached at 202-862-7165, VdeRugy@aei.org