Those damn Republican senators...

[Taro Toporific]

G.O.P. to Seek $350 Billion in Tax Cuts

The proposed compromise also drops a $35 billion tax increase on Americans working abroad that caused an outcry..

This morning in the paper I was pleased to see the both $80,000 exemption and 116yen/$1.00 USD!

`It's going to be a knock-down, drag-out fight between House and Senate Republicans,'' said Stacey Farnen, spokeswoman for Maryland Representative Steny Hoyer, the No. 2 ranking Democrat in the House.

...$80,000 tax exemption for Americans who work overseas. Many House Republicans see that as a tax hike and have vowed not to support it.

bloomberg.com May 20, 2003 09:35 EDT

[Taro Toporific]

Here is the op-ed piece I just submitted to the New York Times (I highly doubt they'll run it):
The New Isolationism through Taxation

The Moscow Times / Monday, May. 19, 2003. Page 7

The American Chamber of Commerce president Andrew Somers said that eliminating the exclusion would also have a disproportionate effect on low-wage earners.

"It will hit the teachers and the guys on the oil rigs much worse than the executives," he said...

AmCham estimates that taking into account proposed accelerated reduced tax rates, a single American expat earning $80,000 would see his or her tax burden jump 65 percent, compared to 19 percent for someone earning $350,000.

And for those earning under $80,000, the burden could be even greater.

... The move shows just how "expendable" expats are politically, Somers said.

James Fenkner, the American head of research at Troika Dialog, agreed: "Maybe the U.S. administration feels that absentee voters just don't count ... given what happened in Florida."

"How likely is it that a Texas Republican is going to sign a bill that punishes oil companies?" said an American lawyer at one investment fund.

[kamome]

The tax compromise package has been finalized, and as long as it stays intact when it's introduced on the House and Senate floors, we expats won't be screwed after all:

http://story.news.yahoo.com/news?tmpl=story2&u=/ap/20030522/ap_on_go_co/congress_taxes_highlights&e=1

Dropped from final bill: President Bush (news - web sites)'s proposal to eliminate tax individuals pay on corporate dividends; Senate plan to raise taxes and fees by $90 billion, including taxes on many Americans who work overseas.

[Big Booger]

THANK GOD!

[cstaylor]

Bush Visits Capitol Hill to Voice Support for Tax Cut Deal

The tax breaks for individuals would cost slightly more than $170 billion in lost revenue, Senate officials said. The dividend and capital gains portion would cost less than $180 billion, and a provision allowing additional expensing and depreciation for small businesses would cost about $10 billion. Mr. Thomas and Mr. Grassley dropped the provision in the Senate bill that would have eliminated a tax exemption that Americans living abroad are now entitled to.