3 ms·
One remarkable thing that most Americans don't seem to know; the US is one of two countries (the other being Eritrea) that takes income tax on income earned whi
by wyager 10y ago
One remarkable thing that most Americans don't seem to know; the US is one of two countries (the other being Eritrea) that takes income tax on income earned while living outside the US. While there are some tax credits that lessen this burden, the only way to free oneself of US income tax is to renounce citizenship. Renouncing citizenship requires a fee of over $2000 and several years of extensive tax records at the IRS's request.
- paulddraper 10y agoI did know that. But what's the connection you're making...?
- deleted 10y ago[deleted]
- joelrunyon 10y agoI think the connection is that taxing you based on where you were born rather than where you live is not very "economically free"
- JDDunn9 10y agoYou can exclude the first ~$100k of your income when working abroad. https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion https://www.irs.gov/individuals/international-taxpayers/fore...
- brobinson 10y agoYou still have the filing burden, though. More annoying than that is that it's extremely difficult to open a bank account overseas because of FATCA. It's less costly to deny Americans service than to comply with the US' reporting requirements.
- MandieD 10y agoAnd the irony is, while foreign banks will figure out how to deal with an American who wants millions handled, my middle-class retirement account is not worth the hassle. I'm just thankful to still have a current (checking) account so I can receive my pay.
- wyager 10y agoAs I said: > While there are some tax credits that lessen this burden Not like it makes it much better. "We're going to completely fuck you over, but here's a small concession."
- adventured 10y agoHow is $100,000 a small concession? That covers the significant majority of all workers in all developed countries.
- wyager 10y agoBecause I still have to file onerous US taxes, I can't open foreign bank accounts, and I personally would have to pay tens of thousands a year to the federal government even though they would do nothing for me while outside the US? I suspect you're wrong that $100k covers the majority of expats, but even if you are, it's not like it's much better to fuck over a minority of expats.
- 2a0c40 10y agoRelevant: http://isaacbrocksociety.ca/2011/12/14/about-the-isaac-brock-society/ http://isaacbrocksociety.ca/2011/12/14/about-the-isaac-brock...
- surfmike 10y agoAnd states like California will not give a foreign tax credit. For example, if you're Californian and work abroad for a couple years, unless you fit some pretty strict criteria, you'll be double-taxed.