By Kanishka Singh
WASHINGTON (Reuters) – Republican presidential candidate Donald Trump has pledged to decrease taxes on U.S. residents residing overseas, in his newest try to lure voters earlier than the Nov. 5 election by which he’s locked in a decent race with Democratic Vice President Kamala Harris.
WHY IT’S IMPORTANT
Each Trump and Harris have in latest weeks made financial pledges to woo voters. Harris has mentioned she is going to purpose to cross a center class tax reduce, whereas Trump has advocated chopping taxes on extra time pay. Each candidates have supported eliminating taxes on ideas.
KEY QUOTE
“I support ending the double taxation of overseas Americans,” Trump mentioned in a press release from his marketing campaign. The Wall Road Journal was the primary to report Trump’s plans. The assertion provided no particular particulars on how he would go about this coverage.
CONTEXT
People residing or touring outdoors america are required to file revenue tax returns, property tax returns, and present tax returns and “pay estimated tax in the same way as those residing in the United States,” in keeping with the U.S. Inner Income Service.
The U.S. has tax treaties with a lot of international nations that already enable diminished charges and exemptions. People overseas don’t have to pay U.S. taxes on their first $126,500 in earned revenue and are eligible for some international tax credit, in keeping with the IRS.
Claiming the international tax credit score can let people successfully cut back their U.S. tax legal responsibility and keep away from double taxation on the identical revenue earned internationally.
BY THE NUMBERS
About 4.4 million U.S. residents lived overseas as of 2022, in keeping with knowledge from the Federal Voting Help Program. About 2.8 million of these have been eligible to vote of their former states.
