To amend the Internal Revenue Code of 1986 to establish an elective residency-based income tax for nonresident citizens of the United States, and for other purposes.

Bill 118 hr 10468, also known as the Elective Residency-Based Income Tax Act, aims to amend the Internal Revenue Code of 1986 to create a new tax system for nonresident citizens of the United States. Under this proposed legislation, nonresident citizens would have the option to pay income tax based on their residency status rather than their citizenship status.

The bill seeks to provide a more fair and equitable tax system for nonresident citizens who may not live in the United States but are still required to pay taxes on their worldwide income. By allowing these individuals to choose to be taxed based on their residency, they would only be required to pay taxes on income earned within the United States.

In addition to establishing the elective residency-based income tax, the bill also includes provisions for reporting requirements and enforcement mechanisms to ensure compliance with the new tax system. It is important to note that this legislation is still in the early stages of the legislative process and may undergo changes before potentially becoming law. Overall, the Elective Residency-Based Income Tax Act aims to provide nonresident citizens with a more flexible and fair tax system while also ensuring that the United States continues to collect taxes from individuals with ties to the country.