NEW YORK, Dec. 19 (Xinhua) -- The United States is almost unique in taxing based on citizenship and not residency, which means many Americans overseas end up paying tax twice: once in the country where they reside and receive their income, and back home to the Internal Revenue Service (IRS), reported Bloomberg News on Thursday.

"It's been seen as an anomaly for years," noted the report. "But now, many expats are counting on Donald Trump to end their fiscal headache and deliver on a pledge he made during the final weeks of his campaign to change the way Americans overseas are taxed. The Republicans gaining a majority in both the House and Senate has added to the optimism that change may be afoot."

The legislation would allow millions of Americans living abroad to potentially "opt out" of filing to the IRS if they already pay taxes in another country, Representative Darin LaHood, a Republican from Illinois, was quoted as saying. It would also include guardrails to stop the wealthy from taking advantage of the system to evade taxes.

"The changes are intended to benefit people who are legitimate long-term overseas residents, not people just sort of parachuting in from time to time," he noted. Enditem

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