|Ouch! Tax Hike for Americans Working Overseas|
|Topic||Taxes, Spending, and Deficits|
|Key Words||Taxes, Tax Revenues, and Cost of Production|
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Reference ID: A146368410
U.S. companies have long provided added benefits as an added incentive to lure American workers overseas. Among the common perqs are housing allowances, subsidies to send employees’ children to private schools, and business class tickets to fly families back to the States at least once a year. Under the new tax code, the cost of these items will now be counted as income received, and will thus all be taxable. Congress added this increased tax burden on American expats to the recent Bush tax cut bill to raise much-needed additional revenue. As a last minute addition to the tax bill—retroactive to the beginning of 2006—tax revenue will increase by an estimated $2.1 billion over the next 10 years.
|Source||Keith Bradshear and David Cay Johnston, “Americans Living Abroad Get a Nasty Tax Surprise”, The New York Times Online, May 30, 2006.|
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