David Lesperance, an expert on international taxes, has said that Congress would have to approve President Trump’s Gold Card.
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The Gold Card, which is being explored as a replacement for the EB-5 immigrant investor visa scheme, provides a fast track to U.S. citizenship for affluent investors and costs $5 million.
According to Lesperance, one of the Trump Card’s touted benefits is that its holders will “magically” be subject to taxes only on U.S. territory.
However, the expert’s opinion is that this cannot be accomplished without revising the IRS Code’s current definition of a “U.S. person” for tax reasons.
Cardholders’ tax responsibilities differ from those of citizens, green card holders, and individuals who meet the significant presence condition, he said, suggesting the creation of a new category to clarify this.
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According to Lesperance, there simply aren’t enough votes in either house to pass such a massive overhaul of the law, and the idea of implementing such a change via executive order is just unrealistic.
In a statement shared with Furucinovel, he made the observation that “the required proposed adjustments are not even included in Trump’s ‘big beautiful tax bill’ that Congress is discussing”.
Based on Lesperance’s analysis, the tax benefit would only be effective for 10 years due to the Byrd Rule, regardless of whether the reconciliation measure is amended last minute and passed by the Republican majority in Congress.
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The immigration adviser further cautioned that Democratic filibusters, which aim to postpone or halt a vote, would ensure that a budget reconciliation bill lacking a tax benefit never passed.
Lesperance emphasized that the Trump Card is not worth six times as much as an EB5 visa, particularly for individuals who are ready to subject their worldwide fortune to U.S. taxes, since it does not provide a permanent tax benefit.
He also mentioned that the card, which the government announced has sold 1,000 units, is affordable for tens of millions of people around the world, which is something that Commerce Secretary Howard Lutnick mentioned.
Not only is the Trump Card not recognized by law, but there is also no online platform where anyone may express their interest in obtaining one.
“The honor of becoming a U.S. taxpayer will not require anyone to spend their entire fortune on a donation to the U.S. government,” the citizenship expert assured.
The Trump Card, according to Lesperance’s prediction, will be more appealing to Americans looking to minimize their future U.S. tax liabilities if it becomes law and offers a territorial tax benefit.