Double taxation and de-banking make a proud American begin to rue his U.S. citizenship

Double taxation “actively discourages Americans abroad from maintaining a financial and professional life, all while still fulfilling civic duties and remaining attached to the U.S. Millions of Americans like me, many of them middle-class professionals who did not leave the United States with the intent to avoid taxes, are affected.”

— Ben in France

Dear Congress, 

I am a proud Franco-American, 30 years old, born in New York. I lived in Kansas for five years before moving to France as a child. Although I grew up abroad, I have always remained deeply connected to the United States. I have returned many times, I vote in federal elections, and I have taken it upon myself to learn about American history, geography, and culture while growing up. I carry my citizenship with pride. But double taxation by the United States has made my life as an American abroad unnecessarily difficult. 

For the past five to six years (ever since I began my professional life) I’ve been confronted with the harsh reality of citizenship-based taxation. One day, my French bank notified me that, due to FATCA, I would face restrictions on my accounts and services. That was the beginning of a long and disheartening journey. Through my research, I was stunned to discover that the United States is the only country in the world, aside from Eritrea, that taxes its citizens regardless of where they live or earn their income.

Since then, many banks have refused to open accounts or grant me credit. I am at constant risk of double taxation, despite the existence of the Foreign Tax Credit, because the United States doesn’t recognize many aspects of the French tax system (including exemptions on the sale of a primary residence). French investment vehicles are also heavily restricted due to PFIC rules. Should I wish to start my own business, I would be subject to GILTI tax, a penalty that discourages entrepreneurship.

In short, this policy actively discourages Americans abroad from maintaining a financial and professional life, all while still fulfilling civic duties and remaining attached to the U.S. Millions of Americans like me, many of them middle-class professionals who did not leave the United States with the intent to avoid taxes, are affected. Some have gone so far as to renounce their citizenship, not out of disloyalty, but out of necessity. That is heartbreaking.

When President Trump pledged to address this issue in October 2024 and then Representative Darin LaHood introduced a bill to end citizenship-based taxation, many of us saw a rare glimmer of hope. I urge this Congress to support efforts toward residence-based taxation, a simple, fair, and widely adopted principle around the world.

Thank you for your attention to this critical, bipartisan issue that undermines the rights and dignity of Americans abroad.

Sincerely, 

Ben in France