I am a business owner living overseas in Asia. I generally spend about $2500/year on tax preparation, between my personal return and the 5471 form that I have t

I am a business owner living overseas in Asia. I generally spend about $2500/year on tax preparation, between my personal return and the 5471 form that I have to file to report my company information on my US tax return. While my financial life does have it's complexity, I have to pay this simply for compliance, independent of income. The $100K/year deduction is on "earned income", i.e. salary. So if you have other income, e.g. dividends or other capital gains on real estate or selling your company, you have to pay at your full standard income rate (small company dividends are not "qualified" unless the US has a corporate tax treaty with the host country). As a business owner, my best strategy from a personal tax perspective is that my company makes no profit - it should all go to me as salary. In the past, that has put me in conflict with a non-US partner, as it didn't match his best strategy. And it means that "profit sharing" for employees doesn't make sense. So US tax law costs me considerable money in compliance costs and fundamentally distorts the way I run my business, for no additional tax revenues to the US. Fundamentally, residence based taxation makes more sense. It's more direct and easier to manage. People talk about these benefits of being a US citizen, as if I don't get services from the country where I live.