Sent this letter to my Congressman:
I’m very angry about the tax cut bill that was passed this week in the Senate. Here’s why: For me, it’s not a tax cut, but a tax rise. Currently, US citizens living overseas do not pay taxes on their first US$80,000 of income. But with the recent changes, we will be required to pay taxes on that portion of our income. In addition, we must pay taxes to our local government (in my case, this is Hong Kong). While I may be able to take a deduction against taxes paid to the Hong Kong government, the end result is I end paying more because US tax rates are higher (amongst the highest in the world).
In addition to my paying taxes, I and many of my fellow Americans working overseas may now end up losing our jobs. This is because many US multinationals use tax equalisation policies, footing the bill for excess taxes that their employees incurred by living and working overseas. Cutting the exemption would drive up the costs of doing business for corporations. They are now more likely to hire locals than they are US citizens!
I find it ironic that these tax cuts – which have been described as a job creation bill – will mean less jobs for overseas workers.