The proposed legislation would still allow citizens and residentaliens abroad to continue deducting from their U.S. taxes dollar-for-dollar any foreign taxes paid.
The income tax exclusion for U.S. citizens and residentaliens abroad was put into law about a quarter-century ago partly to encourage U.S. companies to send U.S. workers overseas.
The U.S. is one of the very few industrialized countries in the world that taxes the income of its citizens and residentaliens no matter where they live and where the income comes from.