The United States taxes on the basis of citizenship. This is sometimes referred to as citizenship-based taxation (CBT). CBT means that the United States taxes its citizens on their worldwide income regardless of where they live and earn their income. RBT Residence-based taxation taxes individuals based on where income is earned. By adopting residence-based taxation, US citizens living overseas who earn income outside of the United States or income unrelated to economic activity in the United States, would no longer be taxed on that income by the United States. Citizenship-based taxation is incompatible with the global economy of the 21st century where the tax policy of all other industrialized nations is based on residency and not nationality.
First a fund raising campaign to support research to lead towards RBTACA (American Citizens Abroad) believes that tax legislation is in the works and that the Congress will p…