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Not sure why this is downvoted to gray, it is correct. In most countries, if you are a tax resident, your foreign income is taxed. What is unusual about US is t
by toth 9y ago
Not sure why this is downvoted to gray, it is correct.
In most countries, if you are a tax resident, your foreign income is taxed.
What is unusual about US is that it also taxes foreign income for US citizens that are living abroad, almost no countries do this.
- ajmurmann 9y agoWell, we are in good company with Eritrea I guess... https://en.wikipedia.org/wiki/International_taxation#Citizenship https://en.wikipedia.org/wiki/International_taxation#Citizen...
- Veratyr 9y agoI think because the original comment is ambiguous. It isn't clear whether by "income I earn overseas", he's referring to income earned while a tax resident of another country (for example living and working there) or income earned while a tax resident of the US (for example through overseas investment or < 1yr work). One commenter appears to have assumed the former, the person replying assumes the latter.
- homakov 9y agoIt is not correct until that "As an individual I am taxed on income I earn overseas. Why shouldn't a corporation?" implied living overseas as well.
- bbcbasic 9y agoEven foreign income that the host country considers to be a pension with special tax treatment (like 401k) http://www.afr.com/business/accounting/irs-chases-us-citizens-in-australia-20150406-1mf5ei http://www.afr.com/business/accounting/irs-chases-us-citizen... I know someone who is giving up US citizenship on return to Australia for this reason.
- EduardoBautista 9y agoI always thought this kind of made sense. I mean, you still enjoy the benefits of being a US citizen. You are also more likely to use the embassies and consulates.
- sumedh 9y agoWell if you look at it from a Govt's perspective it makes sense. Even though you are US citizen living outside US you still part of the club for which you have to pay membership fees. If you dont like that you are free to leave the club and take some other citizenship.
- aoeuasdf1 9y agoNo, because you don't cost the govt anything. You don't use any public services in the USA, you use the public services where you live. You're paying for literally nothing but a passport.
- sumedh 9y ago> You're paying for literally nothing but a passport. Which is exactly what I meant, you are paying the membership fees whether you use the services or not. The US govt knows that, if you dont like you are free to give up that passport which I am sure you wont.
- X-Istence 9y agoRenouncing US citizenship is not something you do by filing in a form and sending it along with your passport to the US embassy. It can take years, plus many lawyers, and in the mean time you have to continue paying taxes, and pay for the process thereof. It's not that simple.
- C4K3 9y agoand it even costs a fixed fee to get a passport.
- yehi 9y agoI am a citizen of a foreign country, I have a job in that country, I store my money in that country, I buy practically all of my products in that country. Why should the fact that when I was a baby, the US government decided to give me citizenship cause me to pay more taxes (or at least pay more to file) than my neighbor who is not a US citizen?