An American family frustrated by the “severe weight” of U.S. double taxation

“Residence-based taxation… would allow us to plan our lives with dignity, without having to choose between our country and our family’s future.”

— Garrett Young

Dear Members of Congress,

I have been living abroad for the last 11 years between Germany, Sweden and Switzerland. I made the first move at the behest of the company I worked for, thinking it would be a fun adventure for myself and my young family. Living abroad has brought us many good things, but it has also brought a tremendous amount of frustration.

Being denied for a home mortgage, being rejected by all but one bank in a given country, almost having my ability to buy property revoked — all of these are the result of carrying my American passport with me. My story is not only about the extreme complications of filing my taxes in the United States, which in most years result in no material tax owed but still cost me thousands in compliance, but also about the exclusion from opportunities to better my family’s situation by investing, by being able to shop competitively for banks, or by simply owning the property in which we live.

American? No, thanks!

I grew up in southern California. I studied in Texas, where I met my wife, who is from Dallas. I started my career in Fort Worth before moving abroad. We still have a house in Texas.

In 2016, we tried to buy a house in France to start a small B&B. We only needed about 110,000 euros as a mortgage. BNP Paribas refused us solely because we were American. They said the loan was too small to justify the compliance risk of taking on an American client. That single fact — my nationality — was enough to destroy our entrepreneurial plan. No American bank would underwrite a foreign property loan either, at least not without a risk premium that made the project impossible.

Now I live in Switzerland, where I bank with Credit Suisse. They were one of only two banks willing to take American clients. No cantonal banks will accept me, and even the post finance system will not accept me. Because of this, my choices are limited, the offerings are often overpriced, and competition does not exist for me. And now Credit Suisse has collapsed and been absorbed by UBS, which has made things even worse. As an American, the number of financial products I can access is more limited, the trading I can do on the Swiss Exchange is handicapped, and my ability to participate in business ownership or real estate investment funds is basically blocked. Several friends have asked me to join their projects, but each time my status as an American has been enough for the other partners to say no.

Second-class children?

I think a lot about my children, who are 11 and 7. When they want to open their first bank account, or get a part-time job, they will face the same restrictions and discrimination. They will be treated as second-class citizens in the country they call home, simply for carrying an American passport.

I have always been a staunch defender of America. I am not a formal ambassador, but many of my European friends would describe me as one, given how much I talk about my home country and try to defend it, even in difficult geopolitical times. To be rewarded for that loyalty by being punished in my daily life and liberty outside the U.S. has been a severe weight. Depending on what future my children choose, I may one day face the incredibly painful decision to give up my U.S. citizenship.

More than five million Americans abroad live this same reality. We have no direct representation, yet we carry the consequences of laws made without us in mind. The United States and Eritrea are the only countries that tax based on citizenship, while every other nation in the world recognizes the fairness of residence-based taxation.

Normal Americans—in all but taxation

Representative Darin LaHood’s Residence-Based Taxation for Americans Abroad Act offers a way forward. It acknowledges that Americans abroad are not tax cheats or deserters, but citizens who remain proud of their country while contributing to their local communities. It fulfills President Trump’s promise to end the double taxation of Americans abroad. And most importantly, it would allow us to plan our lives with dignity, without having to choose between our country and our family’s future.

I am hoping and praying that you will take this initiative seriously. Channel the spirit of liberty our forefathers fought for in creating the greatest democratic experiment the world has ever known, and liberate me, my family, and millions of fellow Americans abroad so that we may pursue happiness and success anywhere in the world.

Sincerely,
Garrett Young