For many Americans with Canadian roots, Bill C-3 represents an extraordinary opportunity. Obtaining a Canadian passport offers exciting new opportunities and greater flexibility for the future. However, there is one important reality many new Canadian citizens are only beginning to discover: Canadian citizenship does not eliminate your US tax obligations.

On June 30, 2026, the US Supreme Court upheld birthright citizenship, rejecting President Donald Trump’s attempt to restrict automatic citizenship for children born in the United States under certain circumstances. For many, the ruling is a constitutional milestone. For certain US expats, however, it may also close the door on a hoped-for escape route from the US tax regime.

Senator Elizabeth Warren (D-MA) has reintroduced legislation aimed at imposing new taxes on America’s wealthiest households. This proposed Ultra-Millionaire Tax Act (“UMT Act”) (similar to the first bill she introduced in 2021) would impose a 2% annual tax on the net worth of households and trusts exceeding $50 million, along with an additional 1% tax on billionaire wealth.

In December 2026, a massive shift in US policy will take effect: eligible young men will be automatically registered for Selective Service. For US citizens living abroad, particularly those raising children outside the US, this development introduces real and often overlooked implications that will impact their children’s lives.