G.W. and the Republican-controlled Congress breaks another famous campaign promise. Which one was it this time? "No More New Taxes!"
Hidden in the bowels of the $69 billion tax cut legislation that was signed last week was an increase for Americans abroad.
In an effort to raise revenues, tax writers in Congress added a last-minute provision that retroactively increased taxes for Americans living abroad. But the sudden imposition of new taxes has surprised overseas taxpayers, and it has employers concerned about the added cost.
The change, which is retroactive to the beginning of 2006, is expected to raise taxes on Americans abroad by $2.1 billion over the next 10 years.
Over all, the bill raises taxes on overseas Americans by about 6 percent, but most individuals will pay nothing more, while others will see their taxes quadruple.
For Kristine Kraabel, a gift shop owner in Singapore, and her husband, who is now the regional human resources director there for an American company, the new legislation will more than triple their American tax bill. Their tax adviser calculates that they will owe $20,000 to $25,000 more in United States taxes, up from $5,000 last year, even as they pay $20,000 in Singapore taxes.
More failed promises. It's the calling card of the Republican party. Failed to protect us; 9/11. Failed our schools; No Child Left Behind Act. Failed our security; Dubai port deal.
And now we can add failure to keep "no new tax" campaign promise as people living overseas will now see a hefty increase in the taxes paid out.
It's good to see the GOP has just about failed everyone at this point across the board.
Tags: [GOP Campaign Promise Of No New Taxes], [Taxes], [$69 billion tax cut legislation], [change, which is retroactive to the beginning of 2006, is expected to raise taxes on Americans abroad by $2.1 billion over the next 10 years], [new rules will push many Americans overseas into higher brackets]
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