Citing house ways and means committee chief Kevin Brady, the publication says millions of US expats would receive tax relief from the move.
More than 8.7 million Americans US citizens, excluding military personnel, live outside the US, the newspaper said.
Serious talks
Brady is quoted by the paper as saying that lawmakers were talking “seriously” about a shift from a citizen-based income tax system to one that is residence based. Under this system people would only pay tax on income earned in the US.
The FT says Republicans have already taken steps to make the equivalent change for businesses by switching to a territorial regime. This system would effectively put US corporations’ foreign earnings beyond the reach of American tax collectors.
Continued pressure
The alleged move follows pressure from the Republican National Committee who in September urged President Donald Trump to replace citizenship-based taxation, and therefore scrap the Foreign Account Tax Compliance Act (Fatca), in his tax reform package.
