Proposal for Expatriate Tax and Wage Reform
This initiative proposes a fundamental restructuring of the economic relationship
between the U.S. government, domestic companies, and citizens working abroad. Our
goal is to remove fiscal barriers that hinder competitiveness in a globalized digital
economy.
1. Geographic Localization of Wages
Compensation standards—including minimum and prevailing wages—should be
benchmarked against the specific economic realities of the host nation, not U.S.
domestic floors.
• Market-Based Pay: Aligns labor costs with local living standards to restore
competitiveness.
• Cost Efficiency: Removes the "salary premium" required by U.S.-centric wage
laws, allowing domestic workers to compete directly with foreign contractors.
2. Proposal for Equitable Expatriate Taxation
The current global labor market is defined by an uneven playing field that
systematically disadvantages American workers. When an American company
outsources work to a foreign national living abroad, that individual typically pays taxes
solely to their host country. In stark contrast, an American citizen performing the same
work abroad is currently subjected to the administrative burden and potential financial
impact of reporting to both the U.S. and foreign governments. We propose a legislative
shift from the current system of citizenship-based taxation to a model where U.S.
citizens working abroad are governed solely by the tax code of their new country after
obtaining citizenship there and obtaining Visitation Alien status in America.
• Sole Local Jurisdiction: Eliminates the dual-filing burden and IRS
extraterritorial reach.
• Elimination of U.S. Tax Obligations: Ensures workers contribute only to the
fiscal systems where they reside and consume public services.
3. Visitation Alien Status
To provide long-term stability and integration, we propose the following legal status
frameworks:
• Host Country Integration: Workers shall be granted the option to pursue
citizenship within the country of their employment, fostering deeper economic
and social ties.
• Visitation Alien Status: Upon establishing long-term foreign citizenship, these
individuals would be classified as Visitation Aliens regarding their U.S. tax/legal
status, effectively ending their status as U.S. citizens. They can visit the U.S. at
will, except would not be citizens.
This reform creates a mobile, high-output American workforce unburdened by
fiscal policies ill-suited for the modern digital service sector. It enables people to
be productive rather than a useless burden.