A bill to amend the Internal Revenue Code of 1954 to exempt from taxation the earned income of certain individuals working outside the United States.

Amends the Internal Revenue Code to exempt from taxation income earned from sources outside the United States for all individuals who are bona fide residents of foreign countries or who are present in a foreign country for a specified time (current law excludes such income of such individuals only if they reside in camps located in hardship areas). Eliminates restrictions on such tax exclusion with respect to: (1) the dollar amount of such exclusion; (2) the taxable year to which the income earned abroad is attributed; (3) community income earned abroad; and (4) meals and lodgings provided by the employer.

Repeals provisions added by the Tax Reform Act of 1976 which allow income tax deductions for various expenses related to living abroad.