Adam is American, but his children will not be — because of U.S. double taxation

An American in Israel agonizes over not passing on his U.S. citizenship to his children because of double taxation.

Dear Congress,

I was born in Israel to two American parents. Both my parents were born and grew up in the United States, specifically in Washington, D.C. and California. My ancestors came to America in the 1890s. We have family all over the continental U.S.. and my bond with the United States is lifelong and deeply personal.

My identity was forged during summers spent with my grandparents and large extended family in the U.S. I grew up speaking English at home and continue celebrating American holidays even after having lived in Germany and Israel for many years. I have always been proud to call myself an American.

But that heritage has become a massive financial liability. Since reaching adulthood, U.S. tax compliance has evolved from a chore into an escalating crisis. My entrepreneurial spirit is being systematically crushed by a system that was not designed for "normal" Americans living abroad. I am currently trapped in a maze of:

• Controlled Foreign Corporation (CFC) Rules: Which penalize me for simply owning a business outside U.S. borders.

• PFIC Regulations: Which make standard local investments and retirement savings toxic.

• The Double-Taxation Trap: Where career milestones—like employee stock compensation and local tax advantages—are negated by U.S. "phantom" taxes.

The financial and emotional toll has forced me into a heartbreaking decision: I have decided not to naturalize my children. As a parent, I cannot in good conscience gift them a heritage that carries a lifetime of financial punishment. I refuse to hand them a birthright that requires them to become tax experts just to survive or prevents them from ever owning a business. I have even been forced to consider the agonizing step of relinquishing my own citizenship—a thought that hurts deeply, given that my ancestors were once so gratefully welcomed by America’s shores.

I urge Congress to address this systemic injustice by supporting Residence-Based Taxation—like every other democracy on Earth. Rep. Darin LaHood’s Residence-Based Taxation for Americans Abroad Act offers a pragmatic, workable solution to the double taxation of most Americans abroad.

American citizens abroad should be seen as ambassadors of our values and our economy, not as targets for an outdated, punitive tax system. Please allow us to keep our heritage without making our financial lives a nightmare.

Sincerely,

Adam in Israel