What is Trump's double citizenship tax?
Asked by: Mr. Rashawn Prosacco III | Last update: February 18, 2026Score: 5/5 (58 votes)
There isn't a specific "Trump double citizenship tax," but rather two related concepts: a potential penalty tax on foreigners from countries seen as taxing Americans unfairly (using Section 891 of the U.S. tax code) and a campaign promise to end "double taxation" for U.S. citizens living abroad by moving towards residency-based taxation, though details are lacking and current rules often prevent double taxation anyway. The Section 891 provision, which allows the President to double taxes on citizens/companies from certain countries, was explored by the Trump administration in early 2025, while the expat promise gained traction in late 2024.
What is the Trump double citizen tax?
Trump's Double Taxation Proposal Explained
This would allow Americans to pay taxes only to the country where they live and earn income, similar to how most other developed nations handle their expatriate citizens.
What is the new bill for dual citizenship?
Senator Moreno's bill proposes eliminating dual citizenship in the United States, requiring current dual citizens to choose one nationality within a one-year period.
Do dual citizens get double taxed?
Yes, dual citizens often have obligations to file and potentially pay taxes in both countries, as both countries' laws apply, but mechanisms like tax treaties and foreign tax credits usually prevent paying tax twice on the same income by offering relief for taxes already paid to the other country. The key is meeting each country's residency or citizenship-based filing criteria, requiring careful attention to reporting requirements, even if credits reduce the final amount owed.
What is Trump's double taxation for expats?
Trump has endorsed ending double taxation for Americans abroad and specifically supported the LaHood bill for residence-based taxation.
The END of DUAL Citizenship? Trump's SHOCKING New Plan Revealed!
How to avoid US exit tax for dual citizens?
Dual Citizenship at Birth
If you were born a dual citizen, you may be able to avoid the exit tax—but only if: You still hold citizenship in your other country at the time of expatriation. You have been a U.S. resident for no more than 10 of the last 15 years (as defined for tax purposes).
Do you lose social security if you have dual citizenship?
Dual citizenship generally doesn't negatively affect U.S. Social Security benefits; in fact, it can help you qualify by counting work credits from another country through "totalization agreements," allowing you to potentially receive benefits from both countries, though you'll likely get a partial U.S. benefit based on U.S. credits. These international agreements prevent paying Social Security taxes to two countries for the same work and help bridge gaps in coverage, enabling eligibility for benefits you might not otherwise get.
How to avoid double taxation as a U.S. citizen?
You can often avoid (or minimize) double taxation by using the Foreign Tax Credit, Foreign Earned Income Exclusion (FEIE), and by taking advantage of tax treaties between the U.S. and other countries.
What's the downside of dual citizenship?
Disadvantages of dual citizenship include potential double taxation, mandatory military service obligations, and restrictions on certain high-level government or security jobs, plus complexities with complying with two legal systems, potential for identity struggles, and navigating differing benefits or rules in each country. These drawbacks vary significantly by the specific countries involved, so consulting legal advice is recommended.
Is Melania Trump a dual citizen?
Yes, Melania Trump has dual citizenship, being a citizen of both her birth country, Slovenia, and the United States, as she became a naturalized U.S. citizen in 2006 after moving to New York in 1996, making her a dual national, which is permitted under both Slovenian and U.S. law.
Can I lose my U.S. citizenship if I have dual citizenship?
Americans aren't currently losing dual citizenship, but a new proposal, the Exclusive Citizenship Act of 2025, introduced by Senator Bernie Moreno, aims to end it, potentially forcing dual citizens to choose between their U.S. and foreign nationalities or risk losing U.S. status within a year of the law's passage. While U.S. law currently permits dual citizenship, this bill would require "sole allegiance," meaning those acquiring another nationality after the law's effective date could lose their U.S. citizenship automatically. The bill faces hurdles, requiring congressional passage and likely legal challenges.
What is the new citizenship law 2025?
Major U.S. citizenship changes in 2025 involve a new, tougher 2025 Civics Test for naturalization applicants (effective Oct. 20, 2025) with more questions and a stronger focus on positive contributions, alongside stricter Good Moral Character (GMC) reviews, while proposed legislation like the Birthright Citizenship Act aims to alter birthright citizenship itself. Applicants filing after October 20, 2025, face the new test, which draws from a larger question bank, requiring 12/20 correct answers, and a holistic GMC review assessing community involvement beyond just the absence of crimes.
What will happen when the Trump tax cuts expire?
If the individual tax cuts expire, taxpayers in all income groups would face higher and more complicated taxes. Machinery and equipment expensing is a key provision that, if allowed to expire, would especially harm capital-intensive industries like manufacturing.
Who pays the most taxes to the US government?
High-Income Taxpayers Paid the Majority of Federal Income Taxes. In 2022, the bottom half of taxpayers earned 11.5 percent of total AGI and paid 3 percent of all federal individual income taxes. The top 1 percent earned 22.4 percent of total AGI and paid 40.4 percent of all federal income taxes.
Do dual citizens have to pay both taxes?
Do dual citizens pay taxes in Canada and the US? Yes, dual citizens may be required to pay taxes in both countries. If you're a dual citizen of the U.S. and another country, like Canada, you're taxed on your worldwide income by the U.S., no matter where you live.
How much tax do you pay on $100,000 in the US?
On a $100,000 income in the U.S., you'll pay roughly $17,000 - $17,500 in federal income tax for the 2025 tax year (after deductions), but your total tax bill includes payroll (FICA) and potentially significant state/local taxes, leading to an effective federal rate around 17% and a total tax burden (federal + state) potentially over 22%, depending heavily on your filing status, deductions, and location.
What is the IRS 7 year rule?
The IRS 7-year rule generally refers to the extended time you need to keep tax records if you file a claim for a loss from worthless securities or a bad debt deduction, giving you up to 7 years from the due date of the return to claim a refund or credit for those specific issues. While the standard record retention is usually 3 years, this 7-year period ensures you have documentation for these specific, potentially complex, financial losses.
What is the double taxation for 2025?
For the 2025 tax year (taxes due in 2026), eligible taxpayers can exclude up to $130,000 of their foreign earned income (that's up from $126,500 for the 2024 tax year). The exclusion is calculated using IRS Form 2555 and helps prevent double taxation on income earned abroad.
Why doesn't America allow dual citizenship?
Yes, the U.S. allows dual citizenship by default. The government does not require naturalized U.S. citizens to give up their citizenship in their country of origin.
What countries can I live in and still collect my Social Security?
You can generally move to most countries and still collect U.S. Social Security, with exceptions like Cuba and North Korea; the Social Security Administration (SSA) website offers a tool to check specific countries and lists nations with totalization agreements (like Canada, UK, Japan, many EU countries) that can help if you worked abroad, but remember you must still file U.S. taxes and fulfill "proof of life" requirements.
What is one of the biggest mistakes people make regarding Social Security?
One of the biggest mistakes people make with Social Security is claiming benefits too early (at age 62), locking in a permanently smaller monthly check, rather than waiting until their Full Retirement Age (FRA) or even age 70 to receive significantly higher payments and larger cost-of-living adjustments (COLAs) over their lifetime. This decision permanently reduces benefits by up to 30% and forfeits substantial annual increases, creating a lasting financial shortfall.
What is Trump's new tax law in 2025?
The standard deduction increased for 2025 and 2026, and a new temporary “bonus” deduction for adults 65 and older begins in 2025. The child tax credit increased to $2,200 for the 2025 and 2026 tax years; retirement plan contribution limits for IRAs and 401(k)s also increased for 2026.
What is the big bill that Trump passed?
The One Big Beautiful Bill Act (OBBBA) or the Big Beautiful Bill (P.L. 119-21), is a U.S. federal statute passed by the 119th United States Congress containing tax and spending policies that form the core of President Donald Trump's second-term agenda. The bill was signed into law by Trump on July 4, 2025.
Which president promised no new taxes?
"Read my lips: no new taxes" is a phrase spoken by American presidential candidate George H. W. Bush at the 1988 Republican National Convention in New Orleans as he accepted the nomination on August 18.