The hidden burden of being an American abroad

"My American passport, once a symbol of freedom, now forces me to choose between caring for my aging uncle and keeping my citizenship."

-Jessica from Massachusetts

Dear Congress,

I was born in the United States to an American mother and a German father, and with that, I was given both American and German passports at birth. In my early twenties, I left the U.S. to build a life in Europe. Now, in my late thirties, I’ve made a home between Germany and Switzerland, where I’m raising my children.

I still feel deeply connected to the U.S. — my mother and sisters live there, and it’s where I spent my formative years. But as the years go by, my American passport — once a symbol of freedom and opportunity — has become a serious burden in my adult life abroad.

Over the past decade, I’ve faced persistent barriers: I’ve been denied bank accounts and credit cards simply because I’m American. I can't open a credit card in Switzerland in my own name — I have to be an authorized user on my partner’s account. I’ve been blocked from investing in European exchange-traded funds (ETFs) and from building a financial future in the currency of the country in which I live — all because of U.S. reporting requirements that make European financial institutions unwilling to work with me.

But the most heartbreaking consequence has only come recently.

In 2022, my father died unexpectedly. He was the youngest of three brothers. His two older brothers, both in their 90s and suffering from dementia, were left without spouses, children, or support. I am their only living relative in Europe who speaks German and is capable of helping them. I have stepped up to care for them, particularly my uncle Gerd, who will turn 93 this July.

In order to help manage his finances, I received his power of attorney. But now, because of my U.S. citizenship, my uncle’s bank is being forced to liquidate his entire retirement portfolio — composed of stable, tax-efficient European ETFs — and transfer the assets into individual stocks, which they will manage at a steep 2% fee. This is an enormous financial loss to my uncle, and the only reason for this disruption is that I — the one person willing and able to help him — hold an American passport.

I am being forced to choose between helping my aging, vulnerable uncle and holding onto my U.S. citizenship.

All I want is the ability to live a normal life in Europe: to have a credit card in my own name, buy a home, invest for the future, and support my family. But the U.S. policy of citizenship-based taxation and the excessive compliance burdens make this impossible. I love my country. I love my family in the U.S. But every year, I am pushed closer to renouncing my citizenship, not out of choice, but out of necessity.

Please put an end to citizenship-based taxation and the financial punishment it imposes on Americans living abroad. Support legislation Congressman LaHood’s Residence-Based Taxation for Americans Abroad Act, which would allow us to remain proudly American — without being punished for where we live.

Sincerely,

Jessica from Massachusetts