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Contact Information:

Center for
Freedom and Prosperity
 P.O. Box 10882
Alexandria, Virginia
22310-9998
202-285-0244

Section 911 Reform

Leveling the Playing Field for Overseas Americans to Make the United States More Competitive

The Issue:
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, an additional layer of U.S. tax is double-taxation - thus violating one of the most important principles of good tax policy. Almost every other country in the world taxes only income earned inside national borders - the common-sense principle of "territorial taxation." American legislators have tried to mitigate the adverse impact of worldwide taxation by allowing workers to protect annual earnings up to $82,400 from double-taxation. This policy, known as the Section 911 exclusion, is a small step in the right direction. See this link for more information.

The Solution:
 Ideally, the U.S. government should not be taxing any income earned abroad - just as foreign governments should not be taxing any income earned in America. If policy makers created a level playing field by making Section 911 universal, more Americans could find jobs in the global economy, U.S. companies would become more internationally competitive, and U.S. exports would substantially increase.

The Legislation:
U.S. Senator Jim DeMint of South Carolina has introduced S. 1140, the Working American Competitiveness Act that will eliminate the cap on income Americans working abroad can earn without being double taxed. ... Section 911 of the U.S. tax code only allows Americans working abroad to protect $82,400 of their foreign earnings from U.S. taxes, but every other developed nation allows their workers to protect all of their foreign income. Our competitors understand that they are already taxed by the nations where their citizens live and work, and that their companies would have a harder time competing in the global economy if their citizens were taxed by two countries. The legislation would eliminate double-taxation on the foreign income of U.S. citizens. Other nations would continue to tax that income, just as the United States taxes the income of foreigners who live and work in America. [FYI: Text of DeMint's Press Release on the introduction of the same bill last Congress. ]

The Coalition for Tax Competition:
Reforming Section 911 and shifting the U.S. to a territorial tax system are major goals of the Coalition for Tax Competition.  The Coalition is leading the educational and public relations effort to change the minds of policymakers and lawmakers in Washington.  This web page will be updated when new information is available. Please contact us at 202-285-0244 or section911@freedomandprosperity.org if you would like to get involved. We are also collecting contributions to help fund our project (see information below).

If you want to help:
Please send all contributions to CF&P Foundation's Section 911 Project, P.O. Box 10882, Alexandria, Virginia 22310. Or contact us at 202-285-0255 (section911@freedomandprosperity.org) to receive wire transfer coordinates. CF&P Foundation is a not for profit organization incorporated under Section 501(c)(3) of the Internal Revenue Code. Please note that donations to CF&P Foundation are tax deductible for U.S. individuals and companies.

What's New

April 18, 2007 ~ Text of Senator Jim DeMint's Working American Competitiveness Act, S. 1140

January 2007 ~ American Citizens Abroad, Stop killing the goose that lays the golden egg Stop the double taxation on Americans working abroad

December 19, 2006 ~ Dan Mitchell Wrote: America's awful worldwide tax system driving some Americans to give up citizenship

December 4, 2006 ~ Dan Mitchell Wrote:  Section 911 provision having harsh impact on U.S. competitiveness

October 19, 2006 ~ Sven Larson Wrote:  Some good news in the Section 911 battle

September 20, 2006 ~ Sven Larson Wrote: The high cost of double-taxing overseas Americans

Sept. 1, 2006 ~ International Herald Tribune, By Keith Bradsher, For U.S. workers abroad, tax bill proves a handicap

Links

DeMint's Legislation

Columns and News Reports

CF&P Studies, Releases and Blog Entries

Letters of Support for DeMint Legislation

Other Links
  
American Citizens Abroad
  
Democrats Abroad
  
Republicans Abroad
 

Columns and News Reports

January 2007 ~ American Citizens Abroad, Stop killing the goose that lays the golden egg
Stop the double taxation on Americans working abroad
http://www.aca.ch/goldgoos.pdf

December 18, 2006 ~ The New York Times, by Doreen Carvajal, Tax Leads Americans Abroad to Renounce U.S.
http://www.nytimes.com/2006/12/18/world/18expat.h tml?_r=1&em&ex=1166504400&en=4a9&oref=slogin

December 1, 2006 ~ Tax-News.com, by Mary Swire, US Expats Look To Home As Tax Changes Bite
http://www.tax-news.com/asp/story/story_open.asp ?storyname=25628

October 11, 2006 ~ Wall Street Joural, Review & Outlook, Whew!
http://online.wsj.com/article/SB116053381670188973. html?mod=opinion&ojcontent=otep (subscription required)

September 1, 2006 ~ International Herald Tribune, By Keith Bradsher, For U.S. workers abroad, tax bill proves a handicap
http://www.iht.com/articles/2006/09/01/yourmoney/ money.php

July 19, 2006 ~ The Wall Street Journal, By Cris Prystay and Tom Herman, Tax Hike Hits Home For Americans Abroad: Higher Levy on Expatriates Spurs Employers To Rethink Hiring Policies, Especially in Asia
http://online.wsj.com/article/SB115326457620010424. html?mod=politics_secondary_stories_hs

July 10, 2006 ~ Bloomberg, by Ryan J. Donmoyer, Expatriate Americans, and Their Employers, Face a Tax Increase
http://www.bloomberg.com/apps/news?pid=2060110 3&refer=news&sid=ayRKGUvDf01w

June 28, 2006 ~ Washington Post, By Daniel J. Mitchell, Tax Me Once, Shame on You . . . Tax Me Twice and the System Needs Fixing.
http://www.washingtonpost.com/wp-dyn/content/ar ticle/2006/06/27/AR2006062701022.html

June 28, 2006 ~ The Wall Street Journal, By Newt Gingrich and Ken Kies, Our Taxed Expats
http://www.newt.org/backpage.asp?art=3145

May 30, 2006 ~ The New York Times, By Keith Bradsher and David Cay Johnston, Americans Living Abroad Get a Nasty Tax Surprise
http://www.nytimes.com/2006/05/30/business/30tax. html?_r=2&pagewanted=1&oref=slogin

May 24, 2006 ~ The Wall Street Journal, Review & Outlook: Lost in Taxation
http://online.wsj.com/article/SB114843215721461347. html?mod=opinion%20&ojcontent=otep (subscription required)

May 2006 ~ Baker & McKenzie (North American Compensation and Employment Law Practice Group), Changes to Section 911 Mean Higher Taxes for Some Expatriates
http://www.bakernet.com/NR/rdonlyres/BE93C0AA- BC42-416A-AC87-6048FCC4F377/0/USSection911Cli entAlertMay2006.pdf

December 2005 ~ Escapeartist.com, Foreign Earned Income Exclusion Internal Revenue Code, Section 911 ~ by William Perez
http://www.escapeartist.com/efam/76/Overseas_Tax es.html

June 16, 2003 ~ Dan Mitchell's PBS Commentary on Eliminating Section 911: "When Politicians Get Greedy, America Loses" ~ Streaming Video
www.townhall.com/audio/CONTENT/on_tv/Dan_Mi tchell_PBS_6_16_03.ram

May 20, 2003 ~ National Review Online, By Ed Feulner, Unfair, If You're Over There: France doesn't tax expatriate incomes. Why do we?
http://www.nationalreview.com/nrof_comment/com ment-feulner052003.asp

CF&P Studies, Releases and Blog Entries

December 19, 2006 ~ Dan Mitchell Wrote: America's awful worldwide tax system driving some Americans to give up citizenship

December 4, 2006 ~ Dan Mitchell Wrote: Section 911 provision having harsh impact on U.S. competitiveness

October 19, 2006 ~ Sven Larson Wrote:  Some good news in the Section 911 battle

September 20, 2006 ~ Sven Larson Wrote: The high cost of double-taxing overseas Americans

July 31, 2006 ~ Rep. Chocola Introduces Section 911 Reform Bill to Level the Playing Field for Americans Living and Working Abroad

July 25, 2006 ~ Andrew Quinlan Wrote: Rep. Chocola seeks to level the playing field for Americans working overseas

July 20, 2006 ~ Dan Mitchell Wrote: Bad worldwide tax system reduces jobs for American citizens.
http://www.freedomandprosperity.org/blog/2006-07/ 2006-07.shtml#203

July 14, 2006 ~ Andrew Quinlan Wrote: Grassley's Ill-conceived tax increase hurts overseas Americans.
http://www.freedomandprosperity.org/blog/2006-07/2006 -07.shtml#145

June 2006 ~ CF&P Foundation Study: Making Section 911 Universal is Good Economic Policy and Good Tax Policy
http://www.freedomandprosperity.org/press/p06-20- 06/p06-20-06.shtml

June 20, 2006 ~ CF&P Capitol Seminar with Senator Jim DeMint: Making America More Competitive: Eliminating the Double-Taxation of Americans Who Live and Work Overseas
http://www.freedomandprosperity.org/notice/n20060 620/n20060620.shtml

June 13, 2006 ~ Coalition for Tax Competition:  Coalition Applauds Senator Jim DeMint's Leadership on Making Americans More Competitive Overseas
http://www.freedomandprosperity.org/press/p06-13- 06/p06-13-06.shtml

June 1, 2006 ~ Dan Mitchell Wrote: Senate tax provision imposes giant tax hike on Americans trying to compete in low-tax jurisdictions.
http://www.freedomandprosperity.org/blog/2006-06/ 2006-06.shtml#015

May 30, 2006 ~ Dan Mitchell Wrote: Congressional tax provision undermines U.S. competitiveness.
http://www.freedomandprosperity.org/blog/2006-05/ 2006-05.shtml#303

May 24, 2006 ~ Dan Mitchell Wrote: A big worm in the tax cut apple.
http://www.freedomandprosperity.org/blog/2006-05/ 2006-05.shtml#243

May 2005 ~ CF&P Foundation Study: Territorial Taxation for Overseas Americans: Section 911 Should Be Unlimited, Not Curtailed
http://www.freedomandprosperity.org/press/p05-25- 05/p05-25-05.shtml

May 23, 2003 ~ CF&P Applauds President and Congress: Tax Cut Legislation Produces Lower Taxes on Capital and Elimination of Anti-Competitive "Section 911" Provision
http://www.freedomandprosperity.org/press/p05-23- 03/p05-23-03.shtml

May 13, 2003 ~ Senate Tax Bill Raises Taxes on Americans Working Overseas, Harms U.S. Competitiveness
http://www.freedomandprosperity.org/press/p05-13- 03/p05-13-03.shtml


Letters of Support for DeMint Legislation

Coalition for Tax Competition

Center for Freedom and Prosperity

National Tax Payers Union

U.S. Chamber of Commerce

Contact Information:
Center for Freedom and Prosperity
 P.O. Box 10882, Alexandria, Virginia  22310-9998
Phone: 202-285-0244
 
info@freedomandprosperity.org     www.freedomandprosperity.org

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