Donald Trump's latest tax cut promise is aimed at Americans living abroad

Some 1.6 million U.S. citizens living outside the country are from crucial swing states such as Arizona

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Former President Donald Trump
Former President Donald Trump
Photo: Michael M. Santiago (Getty Images)
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If former President Donald Trump returns to the White House, he says he will end the “double taxation” of American citizens living abroad, his latest bid to win over voters.

“I support ending the double taxation of overseas Americans,” Trump said Wednesday in a statement first reported by The Wall Street Journal. He has not yet provided additional information about his proposal.

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Millions of Americans living outside the U.S. have to file their tax returns with the Internal Revenue Service each year. That can result in them paying taxes both in the U.S. and in their country of residence, unless there’s a double tax agreement between that nation and the U.S. Dozens of countries ranging from Canada and Egypt to Luxembourg and Venezuela have such tax treaties with the U.S.

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Such agreements can provide reduced rates and exemptions, although they can differ on the exact details, as well as what specific items of income are excluded, according to the IRS. Many contain what is called a “saving clause,” which prevent U.S. citizens or residents from using the tax treaty to avoid paying taxes on income sourced from the U.S.

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Read more: Donald Trump wants to end taxes on overtime. What else is he promising voters?

The Republican presidential nominee’s proposal is targeted at the millions of Americans who live outside the country and are eligible to vote in the presidential election. Roughly 1.6 million of them are from crucial swing states such as Arizona and Pennsylvania, CBS News reported in August, citing figures from a Democratic National Committee voter outreach campaign.

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“Fellow Americans living abroad, your vote is more important than ever,” Trump said in a statement. “No matter where you are, your voice can make a difference.”

His comments were welcomed by groups like Republicans Overseas, which said in a statement that it has been working for a decade on tax issues “wreaking havoc on the lives of overseas Americans.” Marylouise Serrato, executive director of American Citizens Abroad, told The Journal that the compliance costs for filing tax returns can often cost more than the actual taxes overseas Americans actually owe.

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The proposal is just Trump’s latest appeal to Americans that has involved cutting taxes. He’s already advocated for ending taxes on tips, overtime pay, and Social Security benefits, as well as lowering taxes on corporations and extending his 2017 tax cuts. Excluding his latest proposal, Trump’s tax plans would add more than $9 billion to the federal debt, according to the Committee for a Responsible Federal Budget.