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> 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 count
by 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...