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. Last Updated: 07/27/2016

No Change Seen In Expatriates' Tax Exemption

Balanced-budget legislation being negotiated in Washington is unlikely to deprive Americans living abroad of their $70,000 tax exemptions, a senior U.S. Treasury official said.

"The exemption for U.S. citizens might be altered, but I would be very surprised if it were eliminated," said Deputy Treasury Secretary Lawrence Summers in remarks reported by the International Herald Tribune.

A repeal of the exclusion was included in one budget proposed by Democrats and endorsed by U.S. President Bill Clinton during budget battles with the Republican-led Congress.

News of the proposal last week drew protests from American expatriates, including those in Moscow, where the American Chamber of Commerce excutive director, Peter Charow, termed it "totally absurd."

Summers told the Herald Tribune over the weekend that he expected only "minor changes" to the exemption.