Residence-Based Taxation for Americans Abroad Act

This bill would allow U.S. citizens living abroad to choose to be taxed based on their country of residence rather than their U.S. citizenship. Eligible citizens could elect this residency-based system, requiring them to pay tax on assets they owned before electing as if those assets were sold. The bill would establish certificates of nonresidency to verify eligibility, prohibit foreign financial institutions from discriminating against these citizens, and include exceptions for retirement accounts and primary residences. It would primarily affect Americans living outside the U.S. who want to be taxed according to their place of residence rather than their citizenship status.