An American in Australia pleads for dignity, respect and freedom

“Laws like GILTI, which—keep in mind—were initially designed to target large-scale multinational corporations, have ended up punishing small business owners and solo entrepreneurs abroad. This is completely ridiculous. From a country that prides itself on entrepreneurship and freedom of enterprise, this almost feels hypocritical. Instead of encouraging innovation and wealth creation through business ownership, the U.S. tax regime penalizes us.”

— Kourosh Talanehzar

Hi, my name is Kourosh. I am 23 years old and have been living in Australia for essentially most of my young and adolescent life. I moved to Australia in 2007 because my mother wanted to relocate us to be closer to her side of the family. I have completed all my schooling in Australia, from First Grade to Twelfth Grade. Additionally, I have completed my tertiary studies at an Australian university. I have not been back to the United States since I left as a child in 2007.

When I turned 18, I had no clue about citizenship-based taxation filing requirements for U.S. taxes. I didn’t learn about this reporting obligation until I was 21, which was a time I was studying full-time and working two low-paying part-time jobs just to keep my head above water. The realization of this reality hit me when a foreign brokerage decided not to onboard me due to FATCA and PFIC regulations. In that moment, I felt excluded from the financial system. It almost felt like I was being punished for being born in the United States.

Punished for being American

I was overwhelmed by the staggering amount of information I needed to learn to file my U.S. taxes abroad. I know the amount of money may seem small to some, but for someone in college scraping together rent, food, and schooling costs, being quoted $1,200–$8,000 by international tax specialists was staggering. I eventually had to suck it up and pay $1,200 to an accountant in Vienna. I was forced to stay up until three or four in the morning on occasions, just so I could have the “privilege” of filing under the streamlined tax amnesty program. It felt unfair and honestly disgusting that I had to be burdened by such high costs of compliance simply because I was born in the United States of America, which has a tax code akin to Eritrea.

While everyone my age was investing in shares, property, and index funds, I was too scared of triggering a tax event in the United States. I read article after article about people who had been charged thousands of dollars due to double taxation. I really wanted to avoid this, so I resorted to less conventional investments like gold and silver—not because I wanted to, but because it was the only choice that felt not “awful,” as in it was better than holding cash. It was heartbreaking for me because I work in the finance industry and have always had a passion for investing. This passion of mine has been extinguished due to the U.S. tax regime and the high compliance costs. I dream of a day when I can invest in all asset classes and not face the worry of double taxation by the IRS.

Waiting for President Trump

I have written letters to Presidents Trump and Biden, asking them to please revisit this issue and understand that it is actively undermining Americans abroad and making them less competitive. I felt hopeful but also skeptical when President Trump promised to end double taxation for Americans abroad. For the first time, I could see a light at the end of the tunnel—someone in power understood the burden we carry, not just financially, but also emotionally. I am sure a businessman like President Trump would understand how frustrating it is to have restrictions on investments and asset classes. The promise that President Trump delivered gave me hope that all of this could be over soon. If President Trump delivers Residence-Based Taxation for the United States, he will go down in history as truly the President who did the most for Americans abroad.

The unfortunate reality is the U.S. tax regime continues to place massive and unwarranted pressure on Americans abroad. This is especially the case for young entrepreneurs like me who are also trying to build a future through a business. Laws like GILTI, which—keep in mind—were initially designed to target large-scale multinational corporations, have ended up punishing small business owners and solo entrepreneurs abroad. This is completely ridiculous. From a country that prides itself on entrepreneurship and freedom of enterprise, this almost feels hypocritical. Instead of encouraging innovation and wealth creation through business ownership, the U.S. tax regime penalizes us and imposes several other expensive barriers to doing business. We’re forced to navigate complex compliance rules, pay thousands of dollars in compliance costs, and live in constant fear of making a mistake.

Un-American policy

I have watched British and Irish citizens come to Australia and build businesses with ease because their countries have residence-based taxation, and they only need to deal with the Australian tax system. Meanwhile, for us Americans, it’s often simpler to incorporate in the U.S. and try to expand into Australia—just to avoid the nightmares of double taxation. This isn’t just unwise policy; it is downright anti-American and makes Americans abroad less competitive overall.

Could you picture a world where Americans could move abroad and be a global labor powerhouse, free of the silly burdens of double taxation and taxed based on residence rather than citizenship like most other countries (excluding Eritrea)? We are smart, hardworking Americans who just happen to be living abroad, and we deserve the freedom to live, work, build businesses, and invest abroad without being punished for it.

If only the U.S. government could see what a valuable commodity its citizens could be to the global business environment. If only FATCA, excessive filing requirements, and restrictions on foreign investments and companies didn’t exist, we could thrive in the global environment like our British and Irish friends across the pond.

There are countless examples of successful Americans living abroad who contribute meaningfully to their host countries and still maintain strong ties to the U.S.—people like Joseph Nye, the renowned political scientist who spent years teaching and advising abroad; Meghan Markle, who lived in Canada while filming Suits and later in the UK; or even tech entrepreneurs like Patrick Collison, the Irish-American co-founder of Stripe, who has spent significant time abroad building a global company. These individuals demonstrate the immense potential of Americans abroad when they’re not shackled by punitive tax laws.

Superannuation taxation

Another example: in Australia, employers are required to pay a superannuation contribution with every paycheck into a retirement account. This is mandatory for all companies in Australia that have employees. Yet under FATCA, this retirement account is considered “tax toxic.” I don’t have the option to move my retirement funds into a 401(k) or a Roth IRA, nor do I want to. I have colleagues who are also American facing the same exact issue as me regarding superannuation. It’s not fair to tax our retirement savings abroad. We shouldn’t lose our right to tax-free withdrawals at retirement just because the U.S. government wants its “cut.”

If the United States doesn’t see how absolutely draconian this is for average Americans living abroad, I don’t know what will wake them up. I understand that policies like FATCA were created during the Obama years to target ultra-wealthy tax evaders, but all they’ve done is burden every other American abroad because a few bad actors were acting in bad faith.

If Congress truly understands how problematic this issue is, why are lawmakers like Congressman Jeff Hurd introducing bills such as the Holy Sovereignty Protection Act? This bill implicitly acknowledges that citizenship-based taxation poses a serious challenge for Americans living abroad, as it seeks to exempt the current American Pope from such taxation.

But why should a right that all Americans deserve be granted exclusively to the Supreme Pontiff of the Roman Catholic Church? It feels very “for thee, not for me” of Congressman Hurd to recognize the problem, yet instead of supporting H.R. 10468—the optional residence-based taxation bill—he chooses to introduce a competing measure.

What’s good for the Pope …

Realistically, Congressman Hurd should co-sponsor the residence-based taxation bill and separately address any necessary amendments regarding tax-exempt status for the Holy See.

We need real reform. We need fairness for all Americans abroad. We need a tax system that reflects the realities many face with dual citizenships and empowers those dual citizens to succeed—no matter where they live.

Most Americans abroad generally still have deep ties to the United States. This is through family, community, culture, and identity. I personally still have ties to the United States in the form of family, friends, culture, and identity. Whatever wealth we create overseas doesn’t disappear—it will flow back home eventually. We will all eventually get homesick, let’s be honest. Either that, or it will go to support our loved ones, strengthen our communities, and contribute to the broader American economy. We are not outsiders. We are part of the American story. We just represent the U.S. abroad in other countries.

I want to conclude with my final thoughts on citizenship-based taxation. As a student of political science, I truly believe the Founding Fathers would be disappointed to see how the United States treats its citizens abroad today. The very principles they fought for—freedom, fairness, enterprise, and opportunity—are being undermined by a tax regime that punishes Americans simply for living beyond its borders.

It’s time to put the silliness aside and honor those principles once again. It’s time to give Americans abroad the dignity, respect, and freedom they deserve.

In conclusion, I end this with a call to action for all members of Congress, senators, and President Trump to support H.R. 10468 openly and publicly. Finally, I hope for a bipartisan passage of H.R. 10468, and that this can be a moment when Democrats, Republicans, and political independents come together to make this law a reality.

Sincerely,
Kourosh Talanehzar