Among its comments on strategy, American Citizens Abroad said the suggested Trump "Gold Card," among other forces, sharpens the case for residence-based taxation and moving away from the worldwide approach that the US takes on tax.

American Citizens Abroad, an advocacy group, is pressing the case for residence-based taxation (RBT) at a time when the US administration and Congress are wrestling with tax and funding issues. 

ACA has for years (see an example) pushed to take the US away from a worldwide system of taxation – a system almost unique in the developed world. Most nations such as the UK, Germany, Japan and France tax citizens based on where they reside. US citizens and Green card holders are still under the tax filing thumb of the Internal Revenue Service when they move abroad. This compliance burden is a reason why such persons struggle to get access to financial services overseas. 

ACA said in a statement late last week that it is “repositioning its advocacy strategy for residence-based taxation.”

“RBT remains a top priority for ACA, and we see a number of legislative paths for getting RBT enacted. The House and Senate have both adjourned for the August district work period, but this does not mean that Congressional work on legislation is not happening, and ACA is there front and center,” it said.

ACA said the a need by Congress to approve a government funding bill by September 30 gives it an opportunity to roll RBT into such a bill. The bill requires bi-partisan support. 

The House of Representatives and Senate have signaled that there is demand for more reconciliation bills, which don’t need bipartisan support; legislators did not get all they sought in the One Big, Beautiful Bill Act (OBBB), and the RBT case can benefit from an opportunity to work on tax measures, ACA said. 

Other legislative measures on tax, and those addressing changes to visas and immigration, including the Trump “Gold Card," are also channels for ACA to use in advocating RBT, it said.

“ACA is investigating all these legislative opportunities. ACA management and our DC team will be working throughout the summer, visiting Congressional staff and the Administration to strongly advocate for RBT,” it said. “ACA’s arguments for why RBT makes good sense for both individuals and for the economy continue to be the basis for our advocacy and they are well received in offices. New opportunities like Gold Card afford us even more reasons why RBT is needed for all US citizens.”

“US citizens overseas have been asking for RBT tax reform for nearly 50 years. It would be wrong and nonsensical to give tax relief to high net worth investors while five million hard working US citizens continue to be burdened with double taxation, complex and costly filing requirements, lock-out from financial institutions, lock-out from investment opportunities and lock-out from job opportunities,” it added.