A former American expat in the U.K. makes an eloquent case for residence-based taxation

“Under the current system, I was forced to file in two countries, on different tax schedules, at significant personal expense. Each year I spent thousands of dollars simply to remain compliant. The rules were complex and opaque. Finding qualified professional help was difficult and costly, and it created the kind of bureaucratic stress that feels deeply uncharacteristic of a country that prides itself on big ideas, entrepreneurship, and optimism.”

— Shannon Edwards

Dear Members of Congress,

My name is Shannon Edwards, and I write as a proud American, born in Canada to an American mother. I spent the majority of my life in the United States before living and working in the United Kingdom for nearly 13 years, then returning home in 2017 and settling in New York City. I never once considered renouncing my citizenship while living abroad. If anything, my years overseas deepened my love for this country and my commitment to our shared values. But those same years also exposed me to a system of taxation that places an extraordinary and, I believe, deeply unfair burden on ordinary Americans living abroad.

During my years in the U.K., I ran consumer technology startups and became a visible industry spokesperson, often asked to speak to the media about global e-commerce. I married and started a family while living in London. I built businesses that created jobs and fostered transatlantic ties. Every day, in boardrooms and interviews, I believe I represented the innovation, resilience, and optimism that define our country. I was never prouder to be an American than during those years, and I hope that in sharing this testimony I can be an advocate for the many wonderful Americans living and working abroad.

Onerous filing rules

And yet while so many of the Americans serving their country from abroad are indeed extraordinary (most notably the exceptional staff I interacted with at the U.S. Embassy in London), the onerous filing requirements that citizens are saddled with are a great disappointment. Under the current system, I was forced to file in two countries, on different tax schedules, at significant personal expense. Each year I spent thousands of dollars simply to remain compliant. The rules were complex and opaque. Finding qualified professional help was difficult and costly, and it created the kind of bureaucratic stress that feels deeply uncharacteristic of a country that prides itself on big ideas, entrepreneurship, and optimism.

The FBAR requirements were particularly confounding, with their harsh language and dire implications for non-compliance. And when FATCA came into force, many of my fellow Americans across Europe had their bank accounts abruptly closed. Law-abiding citizens were suddenly treated as liabilities by foreign financial institutions. It became harder to invest, harder to grow businesses, harder to build the kind of life abroad that benefits everyone. And in reverse, I now know eager entrepreneurs here in New York who are frustrated by the idea that becoming naturalized citizens could hurt their ability to invest or continue managing their businesses abroad—businesses that often benefit American interests.

As you know, it's estimated that there are more than five million Americans living outside the United States. These are entrepreneurs, teachers, scientists, engineers, and everyday ambassadors for American values—many of whom I met over the years. Yet they have no meaningful representation in Congress and remain subject to a system of double taxation that is, in imposing Citizenship-Based Taxation, joined only by Eritrea.

Acknowledging economic reality

The global standard, of course, is Residence-Based Taxation, which taxes people where they actually live and receive public services. It's a sensible system, and we should adopt it. This would not be a loophole or a special privilege. It would simply bring us in line with international norms and acknowledge economic reality. It would reduce compliance costs, eliminate unnecessary double taxation, and restore fairness to a community of people who serve as one of America's greatest global assets.

I am encouraged by Representative Darin LaHood's proposed Residence-Based Taxation for Americans Abroad Act. It offers a concrete and balanced path forward, responds to President Trump's commitment to end double taxation for Americans overseas, and provides a practical framework to modernize an outdated system. It recognizes what I know from lived experience: Americans abroad are not tax evaders. They are ambassadors of American enterprise and values. They comply with our laws, defend our principles, and show the world what American optimism and belief look like in practice.

Unintended consequences

Living in London gave me perspective on what makes this country exceptional. Distance does not dilute patriotism; if anything, it intensifies it. But it also showed me the unintended consequences of policies that forget citizens who reside beyond our shores. While immigration to the United States is a loud and persistent topic of discussion, we overlook the proud Americans abroad who are building businesses, growing their families, and serving as examples of American principles in action—overcoming many hurdles in the process.

We should be encouraging Americans to live, work, and innovate abroad, not deterring or penalizing them for doing so. Let's not lose sight of these citizens, or abandon our values in treating all Americans equally. I respectfully urge you to support the transition from Citizenship-Based Taxation to Residence-Based Taxation by giving serious consideration to the Residence-Based Taxation for Americans Abroad Act. Every American, no matter where they live, deserves fairness, dignity, and equal treatment under the law.

I hope this burden is reconsidered. I believe Congress has the power to fix it, and I believe we can do better.

Sincerely,

Shannon Edwards

New York, New York

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