| Proposals to repeal the 911 tax exemption given to US citizens employed outside of the United States could have a serious impact on offshore jurisdictions such as Bermuda, a local tax expert has warned, forcing many firms to leave the island.
Section 911 exempts the first $80,000 of an employee's salary from income tax, provided the taxpayer has resided outside of the US for one complete tax year of 330 days within a twelve month period. However, the US Senate is seeking to repeal this fifty-seven year old law in order to help pay for other tax cuts in President Bush's economic stimulus plan. |