An international taxation advisor, David Lesperance, has stated that the Gold Card announced by President Donald Trump would require approval by the United States Congress.
Priced at $5 million, the Gold Card offers wealthy investors a quick pathway to becoming U.S. citizens and is being considered to replace the EB-5 immigrant investor visa scheme.
In his opinion, Lesperance pointed out that the promoted feature of the Trump Card is that the holders will “magically” only be subject to America’s territorial taxation.
But making this happen, according to the expert, would require a change to the definition of a “U.S. person” for tax purposes in the Internal Revenue Code.
He said there would need to be a new category that outlines how the card holders’ tax obligations are different from those of citizens, green card holders, and those who trigger the substantial presence test.
Lesperance said not only is it impossible to make such a significant legislative change by executive order, but there will almost certainly not be enough votes in both houses to make such a change.
“The necessary proposed changes are not even included in Trump’s ‘big beautiful tax bill’ that Congress is discussing,” he noted in a statement shared with Arogidigba Global Journal.
Lesperance said even if the reconciliation bill is modified at the last minute and passed by the Republican majority in Congress, the tax advantage would only be valid for ten years because of the Byrd Rule.
The immigration advisor also warned that a budget reconciliation without a tax advantage stands no chance of passing, as it would be subjected to Democratic filibusters, a tactic used to delay or block a vote.
Without a permanent tax benefit, Lesperance stressed, the Trump Card has no advantage in justifying a price tag that is six times greater than an EB5 visa, especially for those willing to expose their global wealth to U.S. taxation.
He also touched on Commerce Secretary Howard Lutnick’s comment that tens of millions of people in the world can afford the card, which the administration announced has already sold 1,000.
“This is a remarkable claim because not only does the Trump Card not exist in law, but there isn’t even a website where one could register interest.
“No one will spend their entire fortune on a donation to the U.S. government for the honour of becoming a U.S. taxpayer,” the citizenship expert asserted.
Lesperance predicts that if the Trump Card eventually becomes law, with a territorial tax benefit, it will be more attractive to Americans who wish to limit their future U.S. tax liability.