Republican presidential nominee Donald Trump has pledged to eliminate US income taxes for Americans living abroad, the latest in a series of tax proposals unveiled during the final stretch of the 2024 campaign, Bloomberg reports.
“I support ENDING the Double Taxation of overseas Americans! Let’s put America First, together. Register to Vote, and vote Republican,” he said in a statement directed at voters residing overseas.
The proposal, which would require Congressional approval, aims to simplify tax obligations and potentially reduce tax bills for the estimated 9 million Americans living abroad. The former president’s plan, first reported by the Wall Street Journal, could significantly impact expats, who currently must file US tax returns despite not always owing money to the IRS.
The current tax code offers credits to offset federal tax liabilities, and individuals earning $126,500 or less are exempt from US taxes. However, advocates for changing the taxation of Americans abroad cite these IRS rules as a reason for the annual renunciation of US citizenship by thousands.
Trump’s plan, depending on its specifics, could allow high-earning Americans to relocate to low-tax countries and avoid tax obligations altogether.
The “no-taxes-on-Americans-abroad” pledge is the latest in a string of Trump proposals aimed at cutting personal tax bills. He has also floated exempting tipped wages, overtime pay, and Social Security benefits from taxes.
The Republican nominee has campaigned on a platform of drastically reducing household and corporate tax bills if re-elected. He has also championed the renewal of his 2017 tax overhaul, much of which is set to expire at the end of next year. These proposals, according to the Committee for a Responsible Federal Budget, could exceed $10 trillion in costs over a decade.
Trump’s plan for citizens living abroad stands in contrast to his business proposals, which focus on lower taxes for domestically operating companies while imposing higher tax rates and tariffs on companies manufacturing offshore. Trump has pledged to lower the corporate tax rate to 15% from 21% exclusively for companies producing within the US.
His economic plans also center on widespread tariffs. Last month, he threatened to impose steep import duties on US farm machinery maker Deere & Co. if the company relocated manufacturing to Mexico.
