A while back I posted about writing my Senators about the taxation of overseas residents. After months of waiting, I’ve officially been blown off.

Here is what I sent

After waiting a few months, it seems they both have finally decided to reply.

From Senator Cantwell,

Dear M,

Thank you for contacting me regarding income tax exemptions for Americans working overseas. I appreciate hearing from you on this important issue.

Under current law, U.S. citizens who work abroad and meet certain requirements may treat a certain portion of their annual foreign earned income as non-taxable by the United States . Americans who qualify may also claim an exemption for a portion of housing expenses paid by their employer. To qualify for the foreign earned income exclusion or the housing deduction for a given tax year, U.S. citizens must be bona fide resident of a foreign country for the entire tax year or be physically present in a foreign country for at least 330 full days during any 12-month period that includes part of the tax year.

As you may know, the Tax Increase Prevention and Reconciliation Act of 2005 (P.L. 109-222), enacted on May 17, 2006, included several provisions affecting taxation of foreign earned income. Previously, Americans living and working outside of the United States could exclude up to $80,000 of foreign earned income from taxation by the United State government. The Tax Increase Prevention and Reconciliation Act raised the exclusion to $82,000 for 2006 filing season, and indexed this amount to inflation.

The new law also increased the taxes Americans working abroad pay on housing provided by their employer. As you know, U.S. citizens living and working abroad must pay income taxes on housing expenses paid by their employer. However, above a certain base level, these employer-paid housing expenses may be excluded from taxable income. This allows persons living in locations with higher than average housing costs to receive help from their employers without increasing their tax burden. Unfortunately, the Tax Increase Prevention and Reconciliation Act altered the formula used to determine this base level, lowering the level and placing a higher tax liability on foreign workers. The law also placed an upper limit on the housing exemption.

As you may know, on April 18, 2007, Senator Jim DeMint introduced the Working American Competitiveness Act (S. 1140). If enacted, this legislation would eliminate the cap on the portion of foreign earned income that U.S. citizens working abroad may treat as non-taxable by the United States government. The Working American Competitiveness Act has been referred to the Senate Committee on Finance, where it is awaiting further action. Please be assured that I will keep your views in mind as I consider this important issue.

Thank you again for contacting me to share your thoughts on this matter.  Finally, you may be interested in signing up for my weekly update for Washington state residents. Every Monday, I provide a brief outline about my work in the Senate and issues of importance to Washington State .  If you are interested in subscribing to this update, please visit my website at http://cantwell.senate.gov .  Please do not hesitate to contact me in the future if I can be of further assistance.

Sincerely,
Maria Cantwell
United States Senator

Thanks for telling me what I already knew. Now could you please tell me what I don’t know..which is where do you stand on this?? I gather from the lack of response you are in favor of my continued taxation which thus makes me not favor you in the next election.

And my personal favorite from Senator Murray..

Dear M:

Thank you for contacting me regarding S. 1140, the Working American Competitiveness Act, sponsored by Sen. Jim DeMint (R-SC), which is currently pending in the United States Senate. I appreciate knowing your views on this matter.

In the Senate, this legislation falls under the jurisdiction of the Finance Committee. While I am not a member of that Committee, I want to assure you that I will be following the progress of this bill and will keep your views in mind if this or related legislation comes before the full Senate for consideration.

Again, thank you for contacting me. I hope you will continue to keep in touch.

I hope all is well in Bellevue.

Did she (or more likely, her staff) even read my note? “I hope all is well in Bellevue”?!?!? The whole point of the contact was that I’m NOT in Bellevue.

SO.

AHEM.

While I am sure you are less than concerned about my tax return, I am taking this more as a lesson in making sure your representatives are paying attention as clearly they are not.

Consider me disenfranchised.