July 7, 2021 - American Citizens Abroad Global Foundation Free Webinar "Parting the Veil: Analyzing the Revenue Effects of Residence-Based Taxation (RBT)"
Wednesday, July 7, 2021
10:00 AM (DC) / 3:00PM (UK) / 4:00PM (Europe) / 11:00PM (Tokyo)
An in-depth presentation on analyzing the revenue effects of RBT.
A move is afoot to enact Residence-Based Taxation (RBT) in lieu of Citizenship-Based Taxation (CBT). CBT taxes US citizens on their worldwide income no matter what – regardless of where they reside, where they work or where their income originates. Under RBT, individuals who truly reside in a foreign country would not be taxed by the U.S. on their foreign income, only on their U.S. income. RBT is the approach used by every other industrialized country.
In late 2017, American Citizens Abroad Global Foundation (ACAGF) published an analysis by District Economics Group (DEG), Washington, DC, of the revenue effects of a RBT proposal. ACAGF and DEG are currently expanding and updating this study to assist with enactment of RBT.
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Charles Bruce, Legal Counsel, American Citizens Abroad, and Chairman, American Citizens Abroad Global Foundation, and Mike Udell, Founder and Managing Member of District Economics Group, will discuss development of the baseline data and revenue estimates for RBT and discuss why revenue neutrality – not costing the government anything to implement – is so important.
There is near consensus that an RBT bill would have to be revenue neutral, tight against abuse and such that no one is seriously worse off than under existing rules. Is this possible? What are key features which could make this successful? How difficult would it be to draft? What are the likely “fissures” in the affected population? What would things look like “at the end of day”?
“The key to RBT is the numbers. They are like the buttons on a pinball machine; if you don’t know the scores attached to the buttons, you don’t know what you’re doing,” said Charles Bruce.
“Analyzing the numbers and arriving at revenue estimates is not a simple exercise,” commented Mike Udell. “Among other things, it plays-off baseline projections prepared by the Congressional Budget Office (CBO) and scrutinized by the Treasury Department. These are extremely large sets of data.”
Charles Bruce is an international tax attorney in Washington, DC, London, and Lausanne. He was formerly Counsel to the U.S. Senate Finance Committee.
Mike Udell, before founding DEG, worked at the IRS estimating the tax gap using the Taxpayer Compliance Measurement Program data and continued at the Congressional Joint Committee on Taxation (JCT), providing revenue estimates of federal tax legislation. At JCT, he worked closely with the Congressional Budget Office to coordinate the JCT’s micro-simulation model for individual income taxes with several of the CBO’s economic models. He is a former senior manager at Ernst and Young LLP. He earned a B. A. from the University of Pennsylvania and a PhD from Caltech.
This webinar will examine all the key elements. Attendees will be invited to pose questions.
Click here for presentation slides.