Bill Overview
Title: A bill to suspend the collection of income taxes and related interest and penalties from United States nationals who are unlawfully or wrongfully detained abroad and to reimburse such nationals for any penalties paid during such a detention.
Description: This bill defers the collection of income taxes from a U.S. national who is unlawfully or wrongfully detained abroad until 180 days after such national is released from detention, returns to the United States, or departs the detaining country. It also requires the reimbursement of penalties for late payment of income taxes that become due during such detainment. The bill suspends for 270 days after the release of a U.S. national the running of a statute of limitations for the collection of income taxes deferred by this bill. The deferral allowed by this bill does not apply to social security taxes imposed on employees.
Sponsors: Sen. Coons, Christopher A. [D-DE]
Target Audience
Population: People unlawfully or wrongfully detained abroad
Estimated Size: 1000
- The bill specifically targets U.S. nationals, meaning citizens or legal residents of the United States.
- The primary group impacted are those U.S. nationals who are unlawfully or wrongfully detained abroad.
- The bill impacts those individuals by deferring income tax obligations and waiving penalties, thus providing financial relief upon their detention and subsequent release or return.
- Unlawful or wrongful detention scenarios might include those held for political reasons, without proper legal process, or in contravention of international law.
Reasoning
- The target group of this policy is U.S. nationals who are unlawfully or wrongfully detained abroad.
- This population is relatively small, estimated at approximately 1000 individuals globally each year, meaning the policy must be cost-effective to stay within its budget.
- Given a limited population size, the impact on overall wellbeing scores for the U.S. population at large will be minimal, but significant for affected individuals.
- While many will see benefits from deferred tax obligations and waived penalties, some individuals may not see a significant change due to their financial situations or length of detention.
Simulated Interviews
Journalist (Los Angeles, CA)
Age: 45 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 5.0 years
Commonness: 2/20
Statement of Opinion:
- The policy makes me feel seen and supported by my government.
- Knowing I won't be burdened by taxes during such a traumatic time is a huge relief.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 4 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 5 |
Software Engineer (Dallas, TX)
Age: 38 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 3/20
Statement of Opinion:
- It's reassuring to have financial relief during such a difficult time.
- The policy offers peace of mind when negotiating international challenges.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
NGO Worker (New York, NY)
Age: 29 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 3/20
Statement of Opinion:
- Tax liabilities are stressful even in normal situations, let alone during detention.
- This policy is a great step in helping detained citizens handle financial responsibilities.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Retired Diplomat (Miami, FL)
Age: 62 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 3.0 years
Commonness: 1/20
Statement of Opinion:
- For someone in my situation, any relief is welcome.
- Retirement income management is already stressful, this eases some burden.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 4 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
Activist (San Francisco, CA)
Age: 33 | Gender: other
Wellbeing Before Policy: 3
Duration of Impact: 6.0 years
Commonness: 2/20
Statement of Opinion:
- The ability to postpone tax payments is a small solace during an unjust ordeal.
- Direct government support helps regain some sense of security.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 3 |
| Year 2 | 6 | 3 |
| Year 3 | 7 | 4 |
| Year 5 | 7 | 4 |
| Year 10 | 6 | 4 |
| Year 20 | 6 | 4 |
Photographer (Chicago, IL)
Age: 40 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 2.0 years
Commonness: 4/20
Statement of Opinion:
- Being detained is a nightmare, any aid from the government helps.
- This policy will provide some relief from financial stress.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 5 |
Professor (Washington D.C.)
Age: 50 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 2/20
Statement of Opinion:
- I never expected financial burdens to follow a wrongful detention.
- This bill seems to comprehensively address an overlooked issue.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Research Assistant (Seattle, WA)
Age: 25 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 5.0 years
Commonness: 3/20
Statement of Opinion:
- Great to see the government considering the realities of overseas researchers.
- This bill is more than just financial support — it represents a lifeline.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 7 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 8 | 4 |
| Year 10 | 8 | 4 |
| Year 20 | 7 | 4 |
CEO of a Small Business (Atlanta, GA)
Age: 58 | Gender: female
Wellbeing Before Policy: 3
Duration of Impact: 6.0 years
Commonness: 1/20
Statement of Opinion:
- As a business owner, having this tax deferral is incredibly important.
- It's reassuring to know there's support for nationals even in extreme situations.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 3 |
| Year 2 | 7 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 7 | 4 |
| Year 10 | 6 | 4 |
| Year 20 | 6 | 4 |
Lawyer (Boston, MA)
Age: 47 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 3/20
Statement of Opinion:
- Financial relief from tax deferrals during detentions is essential.
- This bill addresses a unique yet critical issue for expatriates.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
Cost Estimates
Year 1: $500000 (Low: $300000, High: $800000)
Year 2: $500000 (Low: $300000, High: $800000)
Year 3: $500000 (Low: $300000, High: $800000)
Year 5: $500000 (Low: $300000, High: $800000)
Year 10: $500000 (Low: $300000, High: $800000)
Year 100: $500000 (Low: $300000, High: $800000)
Key Considerations
- The policy impacts are primarily financial deferrals for specific individuals rather than broader system-wide changes.
- The administrative cost of processing deferred collections and penalties might marginally increase IRS workload.
- Reimbursements are limited to penalties only, not the deferred taxes themselves.
- Uncertainty in the number of people affected could influence annual costs.