Why Understanding Congressional Procedures Is Essential to Tax Reform

For millions of Americans living outside the United States, citizenship-based taxation is an outdated and burdensome system that disrupts their financial lives. Yet, beyond the frustration and sense of injustice, one thing remains clear: too few people fully understand how Congress works and the steps a bill must take before becoming law.

Previous attempts at reform have failed not due to a lack of merit but because they lacked a strategic approach. Changing a deeply entrenched tax system like citizenship-based taxation requires much more than advocacy—it demands a thorough understanding of legislative committees, foresight to anticipate obstacles, and mobilization of the right political levers.

This is where Tax Fairness for Americans Abroad (TFFAA) makes a difference. Unlike other organizations, TFFAA relies on unique expertise in government relations and maintains a permanent presence in Washington, allowing us to directly engage with policymakers and effectively influence the legislative process. Rather than repeating the mistakes of past initiatives that failed to advance reform, we have adopted a pragmatic and professional approach, working closely with lawmakers and partnering with Brownstein Hyatt Farber Schreck, one of Washington’s most influential government relations firms.

Today, we have a unique opportunity with the Residence-Based Taxation for Americans Abroad Act, a bill that we actively helped draft in close collaboration with Representative Darin LaHood (R-IL) before its introduction in December 2024. In just six months after our founding, we successfully facilitated the introduction of this bill in Congress—a testament to the effectiveness of our approach and our ability to engage policymakers.

However, the journey is far from over. Before being debated and voted on, the bill must clear a critical hurdle: budgetary evaluation by the Joint Committee on Taxation (JCT). This budget “score” is vital to informing Rep. LaHood’s next steps with the bill.

Once the scoring process is completed, Rep. LaHood can make appropriate changes in the legislative text to respond to JCT’s feedback and officially reintroduce the bill for this Congress with bipartisan support.

The Joint Committee on Taxation and the House Ways and Means Committee: an indispensable duo

The fate of any tax reform bill in Congress hinges on two key steps:

1. Scoring by the Joint Committee on Taxation (JCT)
   Before a bill can be seriously considered, it must undergo a budgetary review by the JCT, which plays a crucial role in assessing the potential fiscal impact of the proposed reform. This process generally takes 2-4 weeks once it has started, depending on the complexity of the bill.
   If the analysis concludes that the bill would result in significant revenue loss, lawmakers will be hesitant to support it. However, it is common for a bill to be adjusted to improve its budgetary evaluation.
   Contrary to what some may think, a negative JCT score does not mean the end of a bill. Our pragmatic approach allows us to anticipate these adjustments in collaboration with experts and legislators. Amendments can be made to reduce budgetary impact, identify revenue offsets, or refine technical provisions to secure a more favorable evaluation. Many major tax reforms have been revised following an initial JCT evaluation before ultimately being passed.
   Thus, the initial scoring is an assessment step, not a final verdict. It is a tool that allows lawmakers to refine the proposal and maximize its chances of success.

2. Review by the Ways and Means Committee
   With the benefit of the JCT assessment, the bill can be introduced and move to the House Ways and Means Committee, which holds the power to advance, modify, or block any tax legislation.
   This is precisely where TFFAA plays a critical role, leveraging a strategy that has already proven effective. With a permanent presence in Washington, we ensure that the bill includes all the factors favorable to the reform and that key members of the Ways and Means Committee are fully informed of the issues at stake.
   We do not leave the fate of this proposal to chance: we are proactively building the political foundation necessary for its passage.

A critical moment for collective action

The Residence-Based Taxation for Americans Abroad Act presents a historic opportunity to end an outdated tax system that unfairly penalizes millions of Americans abroad. However, its passage will require massive and strategic mobilization.

Through a structured approach and in-depth legislative engagement, TFFAA has already demonstrated its effectiveness by directly contributing to the introduction of this bill. But we cannot fight this battle alone: every voice matters, every individual action strengthens our message, and every financial contribution enables us to go further.

This reform has a real chance of success if collective mobilization supports its legislative progress. Here’s how you can take action today:

• Contact your representatives: Ask them directly to support the Residence-Based Taxation for Americans Abroad Act. Their involvement is crucial to moving the bill forward.

• Support TFFAA financially: Our lobbying efforts require resources. Every contribution helps intensify our efforts and increase our influence.

• Share your stories with us: Personal experiences from Americans abroad are powerful tools to convince lawmakers of the urgency of this reform.

• Share our articles and help spread the word about TFFAA: The more Americans we reach, the stronger our message will resonate with policymakers.

Together, we can turn this legislative effort into a real victory. Let’s mobilize today to make our voices heard in Congress and achieve a fair tax system that reflects the realities of Americans abroad.

TFFAA Team