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 good 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’s going to intention to move a center class tax lower, whereas Trump has advocated slicing 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 Avenue Journal was the primary to report Trump’s plans. The assertion supplied no particular particulars on how he would go about this coverage.
CONTEXT
Individuals residing or touring outdoors the USA 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,” based on the U.S. Inner Income Service.
The U.S. has tax treaties with numerous overseas international locations that already enable decreased charges and exemptions. Individuals overseas don’t have to pay U.S. taxes on their first $126,500 in earned revenue and are eligible for some overseas tax credit, based on the IRS.
Claiming the overseas tax credit score can let people successfully scale 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, based on knowledge from the Federal Voting Help Program. About 2.8 million of these had been eligible to vote of their former states.