Congress is consideringgiving Americans in Canada an incredible tax break
The U.S. Congress has been mulling changes in the way American individualsabroad are taxed by shifting from a citizen-based income-tax system
to a residence-based system that would only tax people on the income theyearn in the U.S.
Americans abroad would no longer betaxed on worldwide income simply because they are U.S. citizens; they wouldonly have to pay tax to the country where they live.
This change would align U.S. rules with that of just about every othercountry in the world, except Eritrea.
If Congress does what it’s talking about — if not in the current tax reformbill, in the next one — it would be a godsend for Americans in Canada.
While official estimates vary widely,there are thought to be approximately one million Americans residing in Canada.
They are, as they will tell you emphatically, hard put-upon U.S. taxpayers,filling out voluminous and complicated IRS tax forms, reporting lots ofdetailed information,
paying tax, dealing with informationrequests from their Canadian bank, and so forth.
If Congress does what it is considering, it would be a godsend for Americansin Canada