A bill to amend the Internal Revenue Code of 1954 with respect to income earned abroad by U.S. citizens living or residing abroad.

[AI summary unavailable — showing source text] Increases the tax benefits accorded income earned abroad by United States citizens by: (1) increasing the limitation on the exclusion of such income to $20,000, and to $25,000 for individuals who have lived in foreign countries for an uninterrupted period of three years; (2) allowing these individuals to claim tax credits for foreign taxes paid against the income falling within this exclusion; (3) allowing taxpayers to still claim the exclusion when they receive the income outside of the country where it was earned in order to escape foreign taxation; and (4) removing the income from the taxpayers' tax computation, thereby excluding the income from their highest, rather than their lowest income brackets. Repeals the election to forego the exclusion of such income. Prohibits taking foreign tax credits if the taxpayer takes the standard deduction.…