Why the National Taxpayer Union’s Pete Sepp supports residence-based taxation

“Whether it's part of the discussion over extending the Tax Cuts and Jobs Act or a standalone bill that moves through the legislative process in some other way, Congressman LaHood's bill answers to the central purpose of providing Americans abroad with a pragmatic pathway to tax fairness.”

— NTU President Pete Sepp

Could you share a brief introduction, including your professional background and current role?

Although public policy was always an interest for me, I did not pursue it in college until I failed the coursework to become a nuclear engineer (!). After working for a local election board and a couple of political campaigns during and after college, I sought employment in Washington, DC. I sent my resume to dozens of organizations in Washington, and the only one hiring was National Taxpayers Union. I began working at NTU as a receptionist in 1988, and have somehow been promoted through ranks. Since 2014 I have served as President of the organization. Much has changed during those years, but I have been constantly reminded that fiscal policy goes well beyond budget line items, distribution tables, and economic modeling -- it is about how the well-being of people is affected by the daily decisions public officials make.

What motivated you to join the TFFAA board?

From my first day on the job, taxpayers' rights have been a consistent theme in the work I do, and no other group of taxpayers is as underserved as Americans living abroad. The problem starts with complex and confusing tax laws and is made far worse by virtually non-existent IRS assistance in-person overseas, a deficit of customer service by phone or chat, and dispute resolution mechanisms that are almost impossible for Americans abroad to reasonably access. Being involved with TFFAA gave me the opportunity to work with like-minded leaders across the ideological spectrum who believe we can meaningfully change the status quo.

Why do you support ending CBT?

As we saw with ending the worldwide taxation structure that American businesses faced, ending CBT for individuals will increase productivity, simplicity, certainty, and justice. Doing so will also mean the U.S. can become competitive with the rest of the world by reducing the tax penalties on economic activity and allowing our citizens abroad to prosper along with Americans at home.

Why do you support the Residence-Based Taxation for Americans Abroad Act, introduced by Representative Darin LaHood?

The RBT for Americans Abroad Act is the right bill at the right time to address the problem of CBT. It is the most thoroughly vetted, fiscally responsible, administratively nimble, and politically attractive approach that policymakers on both sides of the aisle can support right now. Whether it's part of the discussion over extending the Tax Cuts and Jobs Act or a standalone bill that moves through the legislative process in some other way, Congressman LaHood's bill answers to the central purpose of providing Americans abroad with a pragmatic pathway to tax fairness.

In your opinion, what makes TFFAA unique?

To me, TFFAA was born at a key point in tax history to remain laser-focused on the issue of enacting a viable RBT law for Americans Abroad. Harnessing the legislative talent of so many experts in the field of tax policy toward this end is TFFAA's key asset. So many other benefits to tax administration and taxpayer service can flow from this one change.