— John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) April 14, 2021
The Problem: The proposed changes in International Tax (mostly in relation to corporations) will affect numerically more individuals than corporations. The effects on Americans abroad, who run small businesses outside the United States, will be absolutely devastating.
Two Solutions: Suggestions for how to protect individuals (including Americans abroad) would be to make changes to the Subpart F regime – GILTI, etc. There are at least two ways this change can be achieved:
1. To NOT apply Subpart F to INDIVIDUALS who are shareholders of CFCs.
2. If Subpart F is to apply to individual shareholders of CFCs, it should NOT apply to those individual Americans abroad who meet the residence requirements to use the S. 911 Foreign Earned Income Exclusion. (I.e. people who are almost certainly tax residents of other countries.)
March 25, 2021 – The Senate Finance Committee Held A Hearing Described As:
— John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) June 25, 2020
Proposal of @JoeBiden to raise #GILTI tax to 21% (1) reverses the move to territorial taxation for corporations and (2) follows the ideological assumptions of Senators Wyden and Brown that #Americansabroad are presumptive tax cheats (as explained here): https://t.co/G1yrUTtwBn
— John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) June 27, 2020
Taxation is what America is about and America is about taxation.
Perhaps it’s better to say that:
Politics is about taxation and taxation is about politics.
Once Upon A Time In America
The primary legislative achievement of President Trump’s first term was the 2017 TCJA. It’s important to note that the TCJA had it’s genesis in the work of Michigan Congressman Dave Camp and was the result of a long term project of reworking the US tax system. It is absolutely incorrect to suggest that the TCJA was developed by the Trump Administration. It should not be referred to as “Trump Tax Reform”. That said, because of the “politics” involved in enacting the TCJA, the Trump Administration and Republican Controlled Ways and Means Committee, did impact the legislation at the margins. (Rate of repatriation tax, etc.)
Like all tax legislation the TJCA had clear winners and clear losers.