Revenue Estimates under Various Methods of Taxing Americans Abroad

In a supplement to a report, "Impact on Trade of Changes in Taxation of U.S. Citizens Employed Overseas," estimates were provided of U.S. tax liabilities of Americans overseas under a variety of optional taxing methods and of revenue that would be lost to the Treasury as a result of relief to taxpayers under each of the methods. For more than 50 years, the United States provided a special tax incentive to citizens employed abroad to promote U.S. exports and commercial competitiveness. In 1976, Congress enacted amendments which substantially reduced the incentive, but the effective date of the reduction was postponed.