Millions of United States citizens live and work overseas. They contribute to the global economy and represent American interests abroad. However, they often face complex regulatory and legislative hurdles. From managing a unique tax system to handling restricted banking rules, expats deal with problems that lawmakers in Washington can easily overlook.
American Citizens Abroad (ACA) steps in to fix this disconnect. As a nonpartisan 501(c)(4) advocacy organization, ACA represents the interests of overseas Americans directly to the US Government. We sat down with ACA Executive Director Marylouise Serrato to discuss how the organization educates policymakers and drives legislative change for expats worldwide.
Q: How does American Citizens Abroad identify and prioritize the most pressing issues for US citizens living overseas today?
Marylouise Serrato: ACA has been in existence for nearly 50 years so many of the issues are long-standing ones some that have unfortunately worsened as time has gone on, like taxation. ACA also canvasses our members either directly or via our ACA Chapters. Some problems come to us organically when people report them to us via email or social media. We also spend a fair amount of time analyzing legislation and regulations, either proposed or existing to see where there are issues that will affect the community. FATCA, the Foreign Account Tax Compliance Act, is a good example of this. When the legislation was first drafted, we called it out as problematic early-on. ACA saw that the legislation’s target was to combat tax evasion by U.S. citizens living in the U.S. but holding financial and investment accounts overseas. However, we understood that Congress had not taken into consideration U.S. citizens living overseas who need foreign financial tools to manage their day-to-day lives (paying bills, making investments). ACA was on the front line of educating Congress about the fall-out the legislation would cause.
A big part of ACA’s strength is in determining how best to fix the problem or issue. Is it through legislation or regulation and what are the chances for success based on the make-up in Congress and support for our issues. Just as important as our recommendations is understanding who we are talking to and what the current Congressional environment is like. We refine our recommendations on these criteria and prioritize accordingly.
Q: A major concern for US expats is the current tax system. Can you share an update on your advocacy campaigns regarding the shift toward Residence-Based Taxation?
Marylouise Serrato: Great question. Reforming how U.S. citizens overseas are taxed has been an issue that ACA has advocated on for many years. As more and more tax legislation has been passed in Congress and, as new legislation and regulations combatting tax evasion have come into effect, the problems of compliance with tax obligations for U.S. citizens overseas has become exponential.
For the first time in Congress there is Residence-based taxation (RBT) legislation supported by champions in both the House and the Senate; well drafted and following along the lines of ACA’s modeling which we began drafting in 2012. ACA is now working with our champions in Congress on refinements to the legislative language and we are fielding our own professional research to show how the legislation can be drafted without causing a loss in Treasury revenue. We are the only private organization doing this professional research and it will be key in our upcoming meetings with Congress and Committees to help bring on co-sponsors and build support. ACA is also meeting with Congress to socialize the legislation, educate Congress on why Residence-based taxation is not just good for individuals but for U.S. economic and strategic interests. With headquarters in Washington, D.C., we have access to offices and partnerships and are easily accessible to the Congress and Administration.
Q: Educating lawmakers is a core part of your mission. What specific strategies do you use in your submissions to Congress to ensure representatives truly understand the expat experience?
Marylouise Serrato: Our general strategy is to show Congress how the current policy, be that taxation, voting, representation is affecting the community and affecting U.S. interests. Taking the current tax policy as an example, our strategy is to demonstrate to Congress the far-reaching consequences of the current tax policy that limits the ability of U.S. citizens to create economic opportunity for themselves and for the United States. Our recent communication to the Administration and Congress speaks to how important it is for the U.S. to have “boots on the ground” in advancing exports, securing raw materials and production processes and partnering for the next big opportunity. ACA also demonstrates how U.S. citizens are a bridge across cultures and that the advantages of a U.S. presence with its citizens overseas goes far beyond just dollars and cents.
ACA uses the real-world experiences of our members and our management team of ACA – all have lived or live overseas – to explain the issues. We work to bust the myth that U.S. citizens overseas are all super wealthy and evading taxes. Educating Congress about individuals who are running small businesses, consultancies, working in NGOs, teaching, working in medical professions, trailing partners/spouses, moms and dads, really helps change the perspective. Underpinning all this is our research which helps us demonstrate with data the effects of current policy, the makeup of the community and how our recommendations can alleviate problems. This approach applies not just to our work on taxation but on all our issues.
Q: Solid data drives good policy. How does the research conducted by the ACA Global Foundation help you build a stronger case on Capitol Hill?
Marylouise Serrato: As I mentioned earlier, ACA is the only private organization that has conducted professional research on the revenue impacts of tax reform for U.S. citizens overseas. ACA does this through ACA Global Foundation our 501c3 sister organization. Congress relies on numbers, we all know that, and the better you can demonstrate the size, make-up of the community and the cost associated with legislation and regulatory reforms, the better your chances of success and buy-in not only by co-sponsors but by Committee staff.
Congress will run its own numbers on legislation and regulatory proposals, but they will always welcome professional independent research. ACA recognized this and back in 2017 and again in 2022 when we fielded two research projects with a D.C.-based consultancy. We are now updating that research as we know that it will be key in the discussions for Residence-based taxation and for the current legislative proposal, as well as for our other advocacy issues. The U.S. government does not have a good understanding of the community living overseas, there is no government agency tasked with providing this data. ACA Global Foundation is that resource and our focus is on doing more of this in the future.
Q: What is the most important step an overseas American can take right now to support your advocacy efforts and help bring about policy changes?
Marylouise Serrato: First and foremost, they should join ACA. ACA is headquartered in Washington, D.C. with a staff of registered lobbyists and professionals, all with experience living and working overseas. ACA has a long-standing relationship with offices up on the Hill. People in Congress come and go but they always seem to resurface – we know and have worked with most of them.
Secondly, donate to our efforts. We are a primarily volunteer organization so membership fees and donations are essential. Donations can be made to ACA, Inc to support our advocacy and lobbying efforts or to ACA Global Foundation (ACAGF) to support our research and educational work
Lastly join our advocacy campaigns. These write in campaigns are available on our website for anyone to use, member or not. And they work! When you use our advocacy campaigns, we are able to see which offices were contacted and then we follow up with a visit – in person! Our campaigns help us build relationships.
The issues facing US citizens abroad are complex, but clear solutions exist. Direct communication with Congress, backed by accurate data and organized advocacy, provides a practical path to fair tax laws and better financial access for expats.
As global mobility grows, protecting the rights of overseas Americans will become even more critical. ACA continues to lead this effort, ensuring the US Government does not penalize citizens for living outside the country. Alongside ACA is the American Citizens Abroad Global Foundation, a publicly-supported charity under section 501(c)(3) that drives the essential research behind these policy efforts.
To learn more visit https://www.americansabroad.org/