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ID-81-29 1 (1981-02-27)

handle is hein.gao/gaobabbox0001 and id is 1 raw text is: BY THE COMPTROLLER GENERAL Report To The Congress OF THE UNITED STATES American Employment Abroad Discouraged By U.S. Income Tax Laws To adequately promote and service U.S. pro- ducts and operations in foreign countries, U.S. companies employ a large force of U.S. citi- zens abroad. GAO surveyed a group of major U.S. companies which reported that U.S. tax provisions established by the Foreipn Earned Income Act of 1978 are a major disincentive to employment of U.S. citizens overseas. GAO found that the Act does not fully meet its goal of relieving taxes on income reflecting excessive costs of living abroad for the em- ployees of these companies. Further, tax re- turns are difficult and expensive to prepare under the Act's complex rules. Most of the companies surveyed reimburse U.S. employees abroad for excessive taxes, making them more costly than citizens of competing countries, who generally are not taxed by their home countries. The greater costs have led these companies to favor third- country nationals. GAO urges that Congress consider placing Americans working abroad on an income tax basis comparable to that of citizens of com- petitor countries. 114499 1) q4n 1D-81-29 FEBRUARY 27, 181