News & Insights

Calls on Lawmakers to Continue Efforts on Behalf of Americans Who Work Internationally

Washington, DC – The National Foreign Trade Council (NFTC) praised Congress for preserving a tax provision previously at risk during the negotiations of the tax bill enacted today.  The provision, IRC Section 911, allows citizens who live and work abroad to exclude up to $80,000 in foreign earnings from their gross income, offering them some relief from the double taxation associated with the U.S. worldwide tax system.

“Congress has done the right thing in committing to continue tax relief for U.S. workers abroad,” said NFTC President Bill Reinsch.  “By keeping IRC Section 911, Congress recognizes the increased financial burden borne by Americans working abroad, along with the importance of locating U.S. workers in international posts in order to keep U.S. businesses competitive in the global environment.  We strongly encourage lawmakers to continue their efforts to protect these important American workers.”

In a letter this month to Senate and House leadership considering the tax legislation, the NFTC expressed concern over a possible repeal of IRC Section 911, pointing out that the United States is the only major industrial country that does not completely exempt the foreign-earned income of its citizens working abroad from taxation.  The ad-hoc coalition led by the NFTC that signed the letter also noted that for decades, IRC Section 911 has been “a key tool in offering Americans some relief from that (tax) burden.”

“When Congress last addressed IRC Section 911 six years ago, it increased the exclusion amount, thereby recognizing the significance of the provision to the competitive position of U.S. companies and to retaining qualified U.S. workers in important international posts,” the letter stated.  “If anything, these goals are more important today than they ever were.”

The NFTC committee also noted that increasing the tax burden for Americans abroad would harm their U.S. employers, inevitably adding to the numbers of Americans unable to find work at home and hurting the U.S. export sector.  In the future, the NFTC will continue to lead efforts to preserve IRC Section 911.

The National Foreign Trade Council is a leading business organization advocating an open, rules-based global trading system. Founded in 1914 by a broad-based group of American companies, the NFTC now serves 400 member companies through its offices in Washington and New York.