The legislation, which goes by different names in the two houses of Congress and is thus referred to by some as simply the Surface Transportation Bill, would, as a means of financing the bill’s infrastructure rebuilding features, cause US taxpayers to lose their passports if they owed taxes to the US government of more than $50,000.
The revocation would last as long as the tax claim was unresolved.
Concerning though this provision is said to be for those US residents with outstanding federal tax obligations, it is seen as particularly worrisome for the estimated 7 million Americans who live abroad, because it is currently unlawful for them to depart, enter, or attempt to depart or enter the US without a valid US passport.
Among those who are voicing their opposition to the use of passport revocation as a means of forcing those with unpaid taxes to come forward is the American Citizens Abroad.
“Americans overseas have a much more complicated process of declaring US taxes, and therefore, the possibility of making mistakes is greater than for those in the US,” the Geneva-based ACA said in a statement.
“In addition, this provision would cause considerable discrimination against Americans living and working abroad, who often need their passport as an identity paper on a daily basis.”
The bill, which was passed by the Senate in April, now goes to the House of Representatives, where if it is approved it would pass to President Obama for signature before becoming law.
If the legislation is enacted as currently written, it has been estimated that it would raise $743m over 10 years.
The outcry over the funding of the proposed Surface Transportation Bill comes in the wake of media attention surrounding the citizenship renunciation last year of Facebook co-founder Eduardo Savarin, ahead of the company’s initial public offering, and the subsequent proposal by a New York State senator to introduce new legislation aimed at preventing wealthy individuals from renouncing as a means of avoiding US tax.
