Robert Fulford: Obama believes in Israel as a valuable long-time ally. He just gets angry when Israel doesn’t obey http://t.co/N7LkI55C4R
— U.S. Citizen Abroad (@USCitizenAbroad) February 17, 2015
Good post. I tend to put it a little differently, but I think there is an overlap in idea:
America rose to greatness when it maintained a high degree of “moral capital”. It was trusted and admired. There was a sense that American believed in the right values – most notably “freedom” and “democracy”. Those days are long gone.
The above tweet references a fascinating discussion about the best Thomas Jefferson quotes. Homelander lawyers often justify U.S. citizenship-based taxation by citing the 1924 U.S. Supreme Court decision in Cook v. Tait. The world in 1924 is very different from the world today. What is meant by “taxation” in 1924 is very different from what “taxation is today”. Neither the factual context nor the reasoning in Cook v. Tait bears any relation to the world today. The quote referenced in the above tweet is:
The above tweet references the following comment at Robert Wood’s blog.
The comment includes:
Tax loopholes? You must be joking Robert! Pity the poor US Slave (sorry, Citizen) who is self employed and happens to live in New Zealand (or any other country on the planet except for the 25 without an International Social Security agreement with the US). Having paid their taxes to their country of residence, they then face paying US self employment tax to the US as there is no exemption. In the case of New Zealand this is 33% local tax + 15.3% US self employment, a marginal tax rate of almost 50%.
It gets better – Firstly, non-US residents are not eligible for Medicare anyway. Secondly, even if they qualify for Social Security, New Zealand will simply deduct the benefit from their New Zealand state pension which has been funded and paid for from general taxation.
So, a person may spend half a lifetime paying 15.3% of their income in self employment taxes to receive NOTHING in return. Oh, did I mention PFIC, FBAR and all the other “gotchas” faced by the unfortunate US slave in New Zealand. Is it any wonder why people are willing to pay almost anything to get out from under this financial terrorism?
This comment is a reminder that there are no consistent principles for Americans abroad are taxed by the U.S. It depends completely on what country they live in. The situation described in this comment would NOT be shared by a U.S. person in Canada.
The “country by country” discrepancies in how Americans abroad are taxed, compounds the pre-existing injustice.
This is one more reason why it’s impossible to live as a U.S. citizen abroad.
Renounce and rejoice!
I was alerted to the above comment that appeared on Facebook. Here we have one more casualty of the “Code of Conduct” that governs Americans abroad. You have heard the saying:
“When in Rome, do as the Romans”.
When it comes to Americans abroad, the Code says:
“When an American goes abroad, do as an American in the Homeland.”
The above tweet references an article on how dangerous Foreign Exchange rates can be to the financial health of an American abroad. It’s fascinating how fluctuating exchange rates impact the lives of Americans abroad in so many ways.
By the way, the Canadian dollar is feeling. This means that:
2015 is a very good year to renounce U.S. citizenship. To understand why, read this post.
“This is the result of a law that was sold as a means of fighting organized crime and assisting crime victims. Sometimes it’s very rewarding being able to say “I told you so,” but this is one case where it’s hard to take much satisfaction over having been right 13 years ago.”
We have so far not seen quite as brazen and unrelenting civil forfeiture abuses in Canada as have been typical in the United States. But it’s hard to escape the feeling that things are getting worse here, even as Americans are very slowly starting to demand that civil forfeiture powers be reined in. In Ontario, an Orillia couple named the Reillys stand to lose the two boarding houses they own even though they are not charged with any crime.
The Obama administration = IRS
The IRS is in charge of U.S. federal tax administration. It’s mission statement is set out below and is very different from the mission of the U.S. Department of State:
The IRS Mission
Provide America’s taxpayers top quality service by helping them understand and meet their tax responsibilities and enforce the law with integrity and fairness to all.
This mission statement describes our role and the public’s expectation about how we should perform that role.
- In the United States, the Congress passes tax laws and requires taxpayers to comply.
- The taxpayer’s role is to understand and meet his or her tax obligations.
- The IRS role is to help the large majority of compliant taxpayers with the tax law, while ensuring that the minority who are unwilling to comply pay their fair share.
The U.S. Department of State is in charge of something very different from taxes and tax policy. Below is…
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Good post, although I don’t think many would willingly choose this option.
Why a non-U.S. citizen may wish to be a U.S. income tax resident (“U.S. person”). Sound like a non-sequitur?
Normally, anyone residing outside the U.S. is far better off if they are NOT a “U.S. income tax resident.” This is for several reasons:
- U.S. individual taxpayers typically have complex tax rules and reporting requirements, even for simple scenarios, such as a nurse or school teacher working in a particular country. They have to know and understand how to file returns and how to file various forms, such as IRS Form 2555: Foreign-Earned Income Exclusion, Housing Exclusion, and Housing Deduction. See, The Foreign Earned Income Exclusion is Only Available If a U.S. Income Tax Return is Filed. Every year, the compliance costs of living outside the U.S. to pay competent professional U.S. tax advisers to avoid penalties will typically be relatively very expensive.
- The Bank Secrecy Act (BSA)…
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