What are the benefits of U.S. citizenship that justify extra-territorial taxation?

For those the US deems legally incompetent to understand the concept of citizenship, and thus too incompetent to understand renunciation/relinquishment of it, there are no ‘psychological’ or other intangible benefits:

The US prevents them from EVER renouncing or relinquishing for life if the underlying condition is chronic and permanent (ex. mental, psychological, intellectual or physical states which cause substantial lack of understanding sufficient to be considered legally ‘competent’ – ex. brain injury, developmental delays). And prevents minors from doing the same for years until age of majority (rarely earlier unless the minor can prove their understanding to stringent consular judgement) – on the basis of being not mature enough to appreciate the consequences.

Adult parents and legal guardians are prevented by US law from relinquishing/renouncing their children or ward’s US citizenship status on their behalf.

So, why is it that US extraterritorial citizenship-based taxation does not then exclude those deemed legally incompetent (by US laws) of the burdens of taxation predicated on the very status (citizenship) which it also FORCES them to retain (many for life) – because it states that they are incompetent to understand the status, and to form a decision to retain or renounce it?

The FBAR online instructions state that children (deemed ‘US taxable persons’) should complete and submit THEIR OWN FBAR themselves – an absurd and offensive instruction to impose on a minor whom US law states is legally incompetent/immature. It is completely unacceptable that the US should instruct children that their local legal birthday and education savings accounts are reportable (and PENALIZABLE) to an agency called “FINANCIAL CRIMES ENFORCEMENT NETWORK” merely because they are outside the US, and have either a US parent, or a US birthplace. This would apply to those adults deemed incompetent as well.

The FBAR treats ourselves and our children and wards as criminals.

Where is the presumption of innocence before guilt?

And how can the US government and US law maintain the fiction that minors and those deemed legally incompetent due to immaturity or physical/psychological/mental/intellectual conditions are incompetent to understand the ‘benefits’ of US citizenship, yet are competent enough to be mandated to file their own FBARs, and to be US taxpayers?

The US taxes and penalizes the education and disability savings and grants of our children and dependents outside the US – despite giving tax preferred or deferred status to the US equivalent accounts.

The US deprives our children and dependents who are deemed to be US citizen-taxpayers ‘abroad’ of the benefits it extends to ALL US residents (whether citizens or not).

There are no psychological benefits or other similar intangible benefits for those who the US deems legally incompetent to understand US citizenship.

Whereas there are substantial burdens and costs and potentially bankrupting penalties the US imposes on even minors and the legally incompetent – as well as their parents and legal guardians – who may themselves NOT BE US citizens or ‘US taxable persons’.

Obviously, everyday there are many people born around the globe – outside the US – who may have had one or more US citizen parent, and who have NO other US connection or relationship, who will never set foot in the US, are citizens of the non-US country where they were born, and who may never know that the US considers them ‘US taxable citizens’.

That does not even cover the situation faced by those who happen to have been born in the US to non-US parents who are there on a short or temporary basis – to students, visitors, etc. Or, who were sent across the Canada-US border to a US hospital on an emergency basis. Their parents are NOT US citizens and did NOT seek US status for their children. In those cases, the US forces citizenship twinned with lifelong US taxable status on them.
January 2015


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