Did you know they're planning to end the foreign earned income credit?

[sweetheart]

You know the law that says up to 70K earned overseas is not taxed by the USA... I just read about this, and wonder if anyone else is familiar with more details on this law in the senate? What is the status of this stupidity?

For those who've not worked abroad, the country where you work taxes you... usually more heavily than the USA does. The removal of the credit amounts to double taxation and is a way to fuck americans abroad who are less well represented by the government... all 7 million of us.

heres what i know about it:
http://www.democratsabroad.org/resolutions/archives/2003/05/19/000259.php

[La_Serpiente]

1. really?

when are they going to do that? Is it in any legislation this year?

[sweetheart]

6. Here is the text from the link i posted...

Resolution on Threat to Foreign Earned Income Exclusion
May 19, 2003

(adopted by the DPCA Executive Committee on Monday May 19, 2003)

WHEREAS seven million citizens of the United States live and work abroad,

WHEREAS the United States is the only major democracy in the world to tax its overseas citizens on their foreign earned income,

WHEREAS international tax treaties and the foreign tax credit provisions of the Internal Revenue Code do not adequately protect overseas working families from the unfair burden of double taxation by their countries of residence and the United States,

WHEREAS repealing Section 911 of the Internal Revenue Code will unduly burden the many millions of American families living abroad,

WHEREAS repealing Section 911 is a disguised tax increase on working families abroad,

WHEREAS in the past the Internal Revenue Service has itself concluded that the cost of collecting taxes on the foreign earned income of Americans abroad would exceed the amounts actually collected,

WHEREAS while increasing tax on working families abroad the tax bill adopted bythe Republican controlled Senate with the tie-breaking vote of VP Dick Cheney provides a massive tax decrease for the wealthiest Americans,

WHEREAS Democrats Abroad has continually supported the extension of Section 911 rather than its repeal,

NOW THEREFORE BE IT RESOLVED, THAT Democrats Abroad deplores the position on Section 911 adopted by the Senate championed by Senator Grassley and pushed through by the Senate Republican leadership,

THAT Democrats Abroad calls on the House and the Senate to maintain Section 911 of the Internal Revenue Code as currently in effect,

THAT Democrats Abroad calls on all Americans living overseas to contact their Representatives and Senators and the President and Vice President to express the in support for Section 911.

WARNING: Since the measure to eliminate Section 911 has been included in the budget bill passed by the Senate, which now goes to conference committee, NOW OR NEVER is the time to phone, fax or email your representatives in Congress! For the information you need see how to contact your representative.

FOR MORE INFORMATION contact Democrats Abroad International Vice Chair, John McCreery: [e-mail]

[lcordero]

2. this is really going to break the back of service members that

are deployed overseas. It's going to break the back of those same service members that are in combat zones.

[deminflorida]

5. No they pay taxes anyway...it will hurt civilian contractors working

for U.S. companies overseas. Alot of that support however is DOD contract support. So, if those people go by the wayside...look for another Pentagon increase for money request, plus it will add fuel for the GOPs back door plan in implementing a Military draft.

Clinton outsourced alot of Military positions to U.S. companies overseas. Not jobs to foreign countries mind you, but active duty military positions in order to reduce the size of the military and increase U.S. job positions for U.S. citizens overseas.

It was a win-win situation, it provided additional U.S. jobs overseas plus allowed for reducing the federal deficit by decreasing the active duty military support positions. Lots of these U.S. contractor positions were IT support type jobs.

The GOP has been pissed ever since.

[lcordero]

7. I didn't pay any taxes in Bosnia in 2000

That depends on where in the world.

[sweetheart]

8. were you a bosnian employee?

Under the table work is exactly that, and no taxes are taken out... as often people do...

But if you are formally in a country with a working visa on a company payroll, the likelihood you pay no taxes is slim to none...

Ironic that the law section is called "911" eh?

[lcordero]

9. No, a service member

The place was considered a "war zone" at the time and I don't know why.

[deminflorida]

3. I've heard it was planned....

It will kill civilian contractor employment for U.S. companies over-seas. To be taxed twice is really outrageous. Most of those contractors are middle-class Americans. Just goes to show that BushCo really doesn't give a shit about them.

[DUreader]

4. But it won't cover off shore corporations will it?

we doubt it

[papau]

10. Means you must hire locals - gee - another "American" job gone

sigh

:-)

[Art_from_Ark]

11. According to the American Women's Club of Hamburg,

"In a late and tense session on Wednesday, May 21, the House and Senate agreed to drop the Senate plan to repeal the Section 911 tax exclusion for Americans living and working abroad on foreign-earned income. For details about Section 911 and links to relevant articles in the International Herald Tribune and the New York Times, visit the FAWCO website at http://www.fawco.org. "

In other words, it seems like the exclusion will remain in place for now.