News

PRESS RELEASE

BritishAmerican Business Inc Opposes Eliminating Tax Exclusion for US Citizens

London, 16 May 2003 – BritishAmerican Business Inc (BritishAmerican Business), the leading transatlantic business organisation, today wrote to Senator Chuck Grassley, Chairman of the US Senate Finance Committee echoing the concerns of businesses across Europe, over a provision in President Bush’s Jobs and Growth Tax Act 2003.

Specifically, BritishAmerican Business is concerned with a proposal in the Act to eliminate the tax exclusion for US citizens working abroad earning under $80,000 per year. Internal Revenue Code Section 911 allows qualified US citizens living and working abroad to claim an exclusion from gross income from those efforts, as well as certain employer-provided housing costs. Eliminating this option would make it very difficult for many Americans to work overseas.

As the leading transatlantic business organisation, representing some 800 US and UK companies, BritishAmerican Business is primarily concerned that elimination of this section will inhibit US companies from transferring employees overseas since, to offset high taxation, they will be forced to increase salaries. This could have a negative impact on US foreign investment and presence.

BritishAmerican Business believes that the presence of American workers overseas helps support US exports. Making this more difficult is not conducive to increasing trade and investment. In the UK alone, approximately 40% of overseas direct investment comes from the US and the trade relationship is worth $74 billion. In its letter, BritishAmerican Business argued that a significant factor in the success and growth of the transatlantic economic relationship is due to people on the ground.

The proposal to eliminate Section 911 exclusions is now in Senate-House Conference.

Download a copy of the letter (PDF) Get Acrobat Reader (Free)

Notes to Editors

About BritishAmerican Business Inc
BritishAmerican Business Inc of New York and London (BritishAmerican Business) is the leading transatlantic business organisation, dedicated to helping its 1,000 member companies build and expand their international business.

BritishAmerican Business provides its members directly with a range of targeted business services focused on business development, business intelligence and networking, and with access to broader business networks in more than 60 other major cities throughout North America and Europe.

BritishAmerican Business incorporates the British-American Chamber of Commerce (New York/London) and the American Chamber of Commerce (UK), which merged in September 2000. Visit www.BritishAmerican Businessnc.org