THE Director of American Citizens Abroad (ACA),a non-profit organization for American citizens living abroad ,has announced a new tax reform proposal . These reforms are aimed at increasing American jobs, exports and competitiveness, as well as addressing the specific tax situation of Americans residing overseas.ACA's proposal suggests the residence-based taxation instead of citizenship-based taxation. The reforms also focus at increasing America's global competitiveness. ACA Director Jackie Bugnion met with Democratic and Republican staff of the Senate Finance Committee and the House Ways and Means Committee, as well as staff of the Joint Committee on Taxation, to discuss the new ACA proposals.

The U.S. is the only industrialized country in the world to impose citizenship-based taxation. The loopholes in the were highlighted by the difficulty of implementing the Foreign Account Tax Compliance Act (FATCA). FATCA imposes extensive extra-territorial reporting requirements on banks worldwide, and final regulations have still not been issued by the IRS because of the variuos issues that the taxation system has created. a number of Americans living abroad have complained that banks overseas are closing legitimate bank accounts of U.S. citizens living overseas,to avoid the penalties due to the complicated legislation.