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Donald Trump has added another economic promise to his list as he ramps up efforts to secure votes ahead of November's presidential election.
The GOP candidate has promised to end “double taxation” on Americans living abroad by promising to get rid of taxes on overtime, tips and Social Security taxes for seniors.
“I support ending double taxation of Americans abroad,” Trump said in a campaign statement.
U.S. citizens living in or traveling to other countries are required to pay taxes on all of their income, even if they earned the money outside of America.
However, this person may also owe taxes in the country where they live, which means their funds are taxed twice – once in the US and once in the other country.
Donald Trump has promised to end “double taxation” of Americans living abroad
Trump supporters cheered him on at Wednesday's rally
According to the U.S. Internal Revenue Service, they are required to file income, estate and gift tax returns and “pay estimated tax in the same manner as U.S. residents.”
The IRS also stated that Americans living abroad do not have to pay U.S. taxes on the first $126,500 they earn and are eligible for certain foreign tax cuts.
America has treaties with other countries that reduce rates and exemptions.
People claiming foreign tax credits can reduce the amount of U.S. taxes they owe and avoid double taxation on money earned in another county.
With his latest claim, Trump hoped to appeal to millions of Americans living in other countries.
As of 2022, approximately 4.4 million citizens live abroad, according to the Federal Voting Assistance Program.
Of these citizens, approximately 2.8 million were able to vote in their former states.
Trump hopes the proposal will especially encourage Americans living in Israel to vote for him, a source familiar with the matter told the Wall Street Journal.
The problem of double taxation mainly concerns high-income people and people earning investment or retirement income.
Organizations, including the Association of Americans Resident Abroad, are calling for tax policies consistent with Trump's proposal.
In a recent DailyMail.com poll, Trump took the lead over his Democratic opponent Kamala Harris
“A complex tax system unique in the world unfairly burdens American citizens abroad. This imposes significant costs on tax preparation and reporting, often when no tax is due, and often results in double taxation,” AARO said in a statement.
“To address these issues, our organizations advocate for an end to citizenship-based taxation and for the United States to align with the common practice of residency-based taxation.”
Trump also plans to extend his Tax Cuts and Jobs Act through 2017, which is scheduled to expire in 2025.
Democratic presidential candidate Kamala Harris also unveiled her fair share of economic plans to lure voters ahead of the November 5 election.
She said she wanted to lower taxes for the middle class. Her plans include expanding tax breaks for small businesses and increasing corporate taxes.
Harris did not comment directly on foreign tax policy.
Kamala Harris' economic plans focus on helping the middle class
Based on an analysis by the Committee for a Responsible Federal Budget, Trump's economic plans would raise the federal debt by twice as much as Harris' plan.
Trump's plan would push the country's debt to a staggering $7.5 trillion by 2025. Harris' plan would raise the debt to about $3.5 trillion over the same period.
Based on a recent DailyMail.com Poll, Trump increased his lead over Harris from 58.8% winning to Harris' 41.1%.
The latest polling data now suggests that Trump is on track to win 302 electoral college votes to Harris' 236 votes.
