An American in the UK is dismayed by the threat of de-banking

“I have always felt deeply connected to my American identity. Giving up my citizenship was never something I could imagine. But today, the personal, financial, and emotional cost of remaining a U.S. citizen abroad has grown so heavy that it is forcing me to reconsider everything.”

— Julia an American living in the United Kingdom

Dear Members of the United States Congress,

My name is Julia. I was born in the former Soviet Union and left after the fall of the Berlin Wall. I became a naturalized American citizen, and everything I have achieved in my life, both personally and professionally, is closely tied to the United States. I earned my MBA in America, began my career there, and all three of my children were born on American soil. It was because of the education, values, and opportunities I found in the United States that I was able to build a meaningful life and a successful international career, which ultimately brought me to the United Kingdom where my children received their education.

I have always felt deeply connected to my American identity. Giving up my citizenship was never something I could imagine. But today, the personal, financial, and emotional cost of remaining a U.S. citizen abroad has grown so heavy that it is forcing me to reconsider everything. And I know that I am far from the only one in this position.

Like so many of the more than five million Americans living overseas, I became involved in the fight for tax fairness because I can no longer tolerate a system that treats us not as citizens to be respected, but as complications to be avoided. Sometimes it even feels as though we are seen as problems to be punished.

I work in operations. My schedule is full. Yet every year I lose an incredible amount of time preparing for my U.S. tax filings. These are not just minor tasks. They take entire days. Meanwhile, I already pay 45 percent in income tax and 20 percent in VAT here in the UK. On top of that, I am expected to spend thousands of dollars on tax preparation for the U.S. system. This is not simply costly. It is overwhelming and, frankly, deeply unfair.

No Americans, please

Because of FATCA, I am regularly excluded from basic financial services. I cannot open a U.S. investment account because of my foreign address. I cannot invest locally in the UK because most financial products are considered Passive Foreign Investment Companies (PFICs) under U.S. tax law, which leads to harsh penalties and sky-high accounting fees. Financial institutions often turn away Americans completely. I have been told more than once that the easiest and safest thing for me to do is to do nothing. So I leave my savings sitting in cash. This is not because I lack financial knowledge. It is simply because I am American.

There is also a quieter cost that is harder to explain but impossible to ignore. It is the feeling I get every time I fill out a financial form and see the question: “Are you a U.S. person?” I already know what will happen next. I have heard it too many times to count:

“We’re sorry, but we do not accept U.S. citizens.”

That sentence stays with you. This is what it now means to be American abroad.

Does my country love me back?

I have never stopped loving my country. But there are moments when it feels as if my country no longer loves me back. I understand those who have made the painful decision to renounce their citizenship. It is not a decision made in anger. It is a decision made after years of trying and feeling invisible, exhausted, and shut out.

I am not the Pope, but I would hope that as a fellow U.S. citizen, even he might share in the frustration and dismay felt by millions of Americans around the world. Many of us vote. Many of us stay closely engaged with the United States. What we are asking for is not special treatment. We are asking for something very simple: fairness.

The bill introduced by Representative Darin LaHood, which proposes a system of Residence-Based Taxation, is the first real step toward that fairness. It would bring the United States in line with every other developed country by taxing citizens based on where they live and earn their income, not simply where they were born.

This is not a partisan issue. It is a human one.

I urge you to support Residence-Based Taxation. Let Americans abroad live with dignity again. Let us save for our futures, support our families, and take pride in our citizenship without fear, without shame, and without having to choose between the country we love and the life we have built.

Sincerely,

Julia

An American citizen living in the United Kingdom