Grover Norquist: President Trump can finally end the double taxation of Americans abroad

By Grover Norquist

In 2024 President Trump looked into a camera and told Americans overseas: “Once and for all, I’m going to end double taxation on our overseas citizens.” President Trump focused on an important reform that needs to be accomplished as soon as possible.

The “Big Beautiful Bill” won many battles for taxpayers: Lower tax rates. Full expensing. No tax on tips. No tax on overtime. A larger per-child tax credit. Trump accounts for all children.

But ending the abuse of Americans who work abroad and pay taxes twice—both to the USA and to the country they work in—has not yet been won.

Here is the problem. The United States is one of only two countries on Earth that taxes its citizens on their worldwide income no matter where they live. The other is Eritrea. France does not do that to its citizens who work in America. Britain doesn’t. Heck, even China doesn’t.

Americans working abroad are Americans. Americans with jobs and families. They should not be treated worse than citizens of other nations.

Current law

Under current law: An American gets a job, a career, in London, or Singapore, or São Paulo. She pays her full taxes where she lives and works abroad. Then the IRS makes her file a U.S. tax return every single year. Two tax systems. One paycheck. One job. Mountains of paperwork no other nation demands of its citizens abroad, and often the result is no U.S. tax due to the U.S. government. It gets worse. Under the Foreign Account Tax Compliance Act (FATCA), banks around the world have to flag their American customers and report them to the IRS. Not surprisingly, the banks do the easy thing: Many just turn Americans away. Honest people have had accounts closed or denied for only one reason: they are U.S. citizens. That is not tax policy. That is punishment.

The millions of Americans living and working abroad are American citizens. They are teachers, engineers, retirees, and small-business owners flying the American flag in markets all over the world. They should not owe a second tax bill to a government where they don’t earn their living nor use the services available to American residents. Other countries do not do that to their citizens working abroad. This is a modern example of what America’s Founders fought to prevent 250 years ago: no taxation without representation. President Trump is right: no American abroad should pay tax twice. The good news is that the solution has been thought through, created and put into legislative language: The Residence-Based Taxation for Americans Abroad Act.

The solution

Originally introduced by Rep. Darin LaHood in the House, with support from Sen. Todd Young in the Senate, the bill is simple. Americans abroad pay tax on the income they earn where they live. The United States still taxes real American-source income. And the FATCA banking nightmare ends for those who qualify. This is no giveaway. The bill is carefully designed to prevent any loopholes. It guards the Treasury. It has been crafted carefully, and support is growing among Republicans and Democrats. It is ready to go.

This reform is good for the American economy. Every American who can bank, invest, and do business abroad without a Washington penalty is an American selling U.S. goods and an informal ambassador for the United States in a foreign market. Ending this overbroad tax regime will make us more competitive. It lets Americans keep more of what they earn. It is exactly the kind of pro-growth, pro-taxpayer reform President Trump won in the Big Beautiful Bill. The timing is perfect. In 2026 we mark 250 years since Americans revolted against being taxed by a government that did not represent them. What better way to honor that victory than to stop taxing Americans who live, work, and pay taxes where they earn their living once and for all?

Mr. President, you said it, and you were right. The Congress needs to listen to you and act ASAP. This is the moment. Remind Congress that this is the time to act. The Residence-Based Taxation for Americans Abroad Act turns your vision into law. America can end the double taxation of Americans abroad now. Few tax reforms are this powerful in strengthening American workers and increasing our leadership in the world.

Americans for Tax Reform has supported this effort for many years. We look forward to working with the Trump administration to win this fight for American workers.

Grover Norquist is President of Americans for Tax Reform.