3 Democrats sound off on residence-based taxation. One surprise within a surprise [View all]

Hillary--wishy-washy "studies are needed," in other words, I don't wanna touch this. Bernie--basically the same thing, goes on about billionaires in the Caymans (all 4 of them), avoids the rest of us. Plus Roque de la Fuente.

HUH? Roque de la Fuente? Has ANYBODY ever heard of this guy? I sure haven't. But whoever he is, he DOES take a stand on residence-based taxation, and says so in no uncertain terms. I'm not a complete one issue voter, so I'm not tossing my vote away on him, but he's the only one who was willing to take a stand.

Here are the responses to a Democrats Abroad inquiry:


Hillary:
RBT: Would you support the replacement of the current system of taxing overseas Americans, known as citizenship-based taxation, with a system of residence-based taxation?

I know that most Americans living abroad are just trying to make a living and provide for their families. I believe that we need a broad discussion about reforming our tax code to cut taxes for hard-working, middle class American families living both here and abroad, and to ask the wealthiest Americans to pay their fair share. That means, among other things, closing loopholes that allow many hedge fund managers to pay a lower tax rate than nurses or teachers and supporting proposals like the Buffet Rule. But it also means closing loopholes that create incentives for corporations to ship jobs and profits overseas, and making sure that the wealthiest Americans can’t move overseas to avoid paying taxes. Americans, regardless of where they live, often benefit from American education, infrastructure, legal protections, and trade policies. This is a complicated issue and I will work with Americans living abroad and members of Congress to cut taxes for hardworking, middle class Americans, but also avoid creating any adverse incentives for those looking to avoid contributing their fair share.

FBAR: Would you support reforms to FBAR regulations to address these concerns and inequities?

As president, I will work with Americans living abroad and members of Congress to examine filing requirements with the aim of avoiding redundancies and minimizing unnecessary paperwork and confusion. Any reforms would also need to be scrutinized to avoid weakening government capacity for monitoring illegal activity or tax avoidance facilitated by holding foreign bank accounts.
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In other words, skirt the issue. Very disappointing.

Bernie:
Question: Would you support the replacement of the current system of taxing overseas Americans, known as citizenship-based taxation, with a system of residence-based taxation?

This is something that deserves serious consideration. Other than Eritrea, the U.S. is the only country that I am aware of that requires the filing of two annual tax returns to reconcile complex tax codes of different countries.

In my view, we can provide tax relief to middle-class families living overseas, while prohibiting large corporations and the wealthy from avoiding over $100 billion a year in taxes by stashing their cash in the Cayman Islands and other offshore tax havens.

Question: Would you support reforms to FBAR regulations to address these concerns and inequities?

Yes, I look forward to working with Democrats abroad to address these concerns and make this system more equitable. As you know the FBAR reporting threshold has not been adjusted for inflation since it was first initiated in the early 1970s. We need to look at that. We also need to look at removing the unnecessary duplication in the reporting requirements between FBAR and FATCA.

I am also sympathetic to the concerns raised by older Americans living abroad with the mandatory online reporting requirements that are now in place.

At a time when this country has an $18.4 trillion national debt and so many unmet needs, I do believe that we need to do everything we can to eliminate tax evasion. I also believe that we should be rewarding, not punishing, middle-class citizens living abroad who are following the rules. In my view, we can and we must accomplish both of those goals.
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Same old platitudes. Yes, Bernie, we all know about the Cayman Islands. How about the 99.9% of us who DON'T hide money there (or anywhere else, for that matter)? We know who you DON'T want to help. That is not what the question was. The question was about the other 6 million of us.

Rocky de la Fuente, whoever the hell THAT is:

2. RBT: Would you support the replacement of the current system of taxing overseas Americans, known as citizenship-based taxation, with a system of residence-based taxation?

YES
Citizenship-based taxation places an undue burden on U.S. citizens living abroad. In effect, it imposes dual-tax exposure upon individuals who, other than on a limited basis, do not represent an economic burden on the programs and services that our federal government provides. Residence-based taxation reflects one’s rationale contribution to the programs and services that affect the lives of those who reside in any given country and city. As Democrats Abroad so cleverly implies, unless the United States aspires to become the next Eritrea, it is time to join the rest of the world in recognizing the nexus between taxation and the programs and services such monies are meant to fund.

3. FBAR: Would you support reforms to FBAR regulations to address these concerns and inequities?

YES
In our federal government’s zeal to create agencies and promulgate regulations, it often fails to do due diligence with regard to redundant and conflicting regulations. The overlap between FACTA and FBAR is an example of such failure. Both address aspects of tax evasion, and while FBAR’s reach may be more comprehensive, a single regulatory approach would be more effective and efficient and far less burdensome with respect to law-abiding citizens living abroad. I would suggest thinking beyond implementing reforms to FBAR and FACTA and explore how a more focused, consolidated approach might be enacted to concentrate on the actual activities that are intended to be policed while eliminating redundant reporting requirements and facilitating alternative forms of filing so as not to unduly burden law-abiding citizens abroad.
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WTF???????????? WHO THE HELL IS THIS GUY? I've never heard of him until just now, when I read the positions on the Democrats abroad page. Whoever he is, he's the only one who had the guts to come out and say YES. With my luck, he'll be in outer space on every other issue, but he's taking a stand here, and it's on our side.