3 ms·

It failed because those countries didn't had Citizenship-based taxation, and guess what USA has it.

by hokkos 7y ago

toasterlovin 7y ago
Perhaps I’m not following you, but all income produced in the US is subject to federal taxes, regardless of the citizenship of the parties involved.
- basementcat 7y ago
  All income earned by USA citizens is subject to taxation by USA authorities even if the money was earned while resident in another country. Most other countries do not tax their citizens for income earned abroad. *There may be tax treaties that may reduce total tax liability.
  - arcticbull 7y ago
    It reduces your tax liability to the greater of the two. The only other countries that practices citizenship based taxation are Eritrea, Hungary and Myanmar. Even Hungary doesn't tax dual-nationals. Of them only the US is in a position to really collect.
- 6502nerdface 7y ago
  And all income earned by a US citizen is subject to federal taxes, regardless of where in the world the income is earned. Hence there would be precedent for a US wealth tax to apply to a citizen’s “global wealth,” which, unlike in the case of those other countries, means people couldn’t dodge the tax just by changing the physical/notional location of their wealth.
  - toasterlovin 7y ago
    Ah, that makes sense. I did know about the U.S. taxing foreign income (less whatever taxes were already paid to foreign governments). I see the connection to a wealth tax now.
  - timoth 7y ago
    > And all income earned by a US citizen is subject to federal taxes, regardless of where in the world the income is earned. This is just the same as many countries. All income earned is subject to tax in the country you live in, regardless of where in the world it was earned. However, this only applies when you are tax resident. So I can't see any reason why a wealth tax in other countries couldn't also apply to global wealth. There's a precedent set by their income tax already applying to global income. The almost-unique difference in the case of the US is that it taxes its citizens even when resident outside the US (I realise there's a deduction for taxes you've paid overseas).
    - arcticbull 7y ago
      >> (I realise there's a deduction for taxes you've paid overseas). Sort of. It depends on which country you live in and if that country has a tax treaty, which applies to 68 [1] of the world's 195 countries. If you're living in a tax treaty country then you pay the greater of the US tax or the local tax. If you're living in a non-treaty country you pay taxes to both countries on all your income. The US excludes the first ~100K of foreign income. Complications arise when you start a business abroad as a US citizen because then you're the proud owner of a controlled foreign corporation and that's its own special brand of disappointment. [1] https://www.irs.gov/businesses/international-businesses/united-states-income-tax-treaties-a-to-z https://www.irs.gov/businesses/international-businesses/unit...
undersuit 7y ago
I also like pointing out that the United States has an Expatriation Tax. France's wealth tax was like if a US state tried to tax wealth, the wealthy would just move away.

It failed because those countries didn't had Citizenship-based taxation, and guess what USA has it.

by hokkos 7y ago

It failed because those countries didn't had Citizenship-based taxation, and guess what USA has it.

Perhaps I’m not following you, but all income produced in the US is subject to federal taxes, regardless of the citizenship of the parties involved.

basementcat 7y ago
All income earned by USA citizens is subject to taxation by USA authorities even if the money was earned while resident in another country. Most other countries do not tax their citizens for income earned abroad. *There may be tax treaties that may reduce total tax liability.
- arcticbull 7y ago
  It reduces your tax liability to the greater of the two. The only other countries that practices citizenship based taxation are Eritrea, Hungary and Myanmar. Even Hungary doesn't tax dual-nationals. Of them only the US is in a position to really collect.
6502nerdface 7y ago
And all income earned by a US citizen is subject to federal taxes, regardless of where in the world the income is earned. Hence there would be precedent for a US wealth tax to apply to a citizen’s “global wealth,” which, unlike in the case of those other countries, means people couldn’t dodge the tax just by changing the physical/notional location of their wealth.
- toasterlovin 7y ago
  Ah, that makes sense. I did know about the U.S. taxing foreign income (less whatever taxes were already paid to foreign governments). I see the connection to a wealth tax now.
- timoth 7y ago
  > And all income earned by a US citizen is subject to federal taxes, regardless of where in the world the income is earned. This is just the same as many countries. All income earned is subject to tax in the country you live in, regardless of where in the world it was earned. However, this only applies when you are tax resident. So I can't see any reason why a wealth tax in other countries couldn't also apply to global wealth. There's a precedent set by their income tax already applying to global income. The almost-unique difference in the case of the US is that it taxes its citizens even when resident outside the US (I realise there's a deduction for taxes you've paid overseas).
  - arcticbull 7y ago
    >> (I realise there's a deduction for taxes you've paid overseas). Sort of. It depends on which country you live in and if that country has a tax treaty, which applies to 68 [1] of the world's 195 countries. If you're living in a tax treaty country then you pay the greater of the US tax or the local tax. If you're living in a non-treaty country you pay taxes to both countries on all your income. The US excludes the first ~100K of foreign income. Complications arise when you start a business abroad as a US citizen because then you're the proud owner of a controlled foreign corporation and that's its own special brand of disappointment. [1] https://www.irs.gov/businesses/international-businesses/united-states-income-tax-treaties-a-to-z https://www.irs.gov/businesses/international-businesses/unit...

undersuit 7y ago

I also like pointing out that the United States has an Expatriation Tax. France's wealth tax was like if a US state tried to tax wealth, the wealthy would just move away.