Well isn’t this nice:
In an effort to raise revenues, tax writers in Congress added a last-minute provision that retroactively increased taxes for Americans living abroad. But the sudden imposition of new taxes has surprised overseas taxpayers, and it has employers concerned about the added cost.
The increase for Americans abroad was added at the last minute to the $69 billion tax cut legislation that was signed last week. Americans living overseas paid almost $3.5 billion in United States income taxes in 2001, the latest year for which data is available, according to the Internal Revenue Service.
The change, which is retroactive to the beginning of 2006, is expected to raise taxes on Americans abroad by $2.1 billion over the next 10 years.
Now, of course, the newfound war on expats must have nothing to do with the overwhelming Democratic tilt of cosmopolitans. Nothing at all.