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The United States claims global taxation over its subjects. It's a similar concept.
by clarkmoody 6y ago
The United States claims global taxation over its subjects. It's a similar concept.
- dantheman 6y agoAlso immoral and wrong.
- koolba 6y agoI’d argue the global taxation at the Federal level is more justified. You’re paying for the right to flee back from anywhere on Earth and have the doors of the USA swing open for you.
- randyrand 6y agoyou're paying for much more than just that, realistically. It's a lot of money.
- imgabe 6y agoCitizens of every other country in the world are also able to flee back to their home country without having to pay tax in a place they don't live.
- Natsu 6y agoAs I recall, the tax is set so that it only affects people getting a relatively hefty amount of income and there's a credit on taxes paid outside the country. But yeah, it's complex and it sucks and everything I know about it came from reading patio11's posts on it.
- patio11 6y agoThere's a Foreign Earned Income Exemption which will eliminate the tax payment requirement for most people on wage income, but you'll be taxed on investments/interest from the first dollar. People with income higher than the FEIE who pay taxes to a high-tax high-service jurisdiction (like Japan) will generally use the foreign tax credit to take care of most of their liability; folks who live in a low-personal-income jurisdiction like Hong Kong and are high-paid get smacked pretty hard. There exists a plethora of compliance problems which are worse than the actual taxation, for example the PFIC regulations which make it non-economic to do standard middle class investment abroad for e.g. a child's education. Advocates for Americans overseas are trying to get the PFIC and FATCA regulations overturned or get safe harbors expanded dramatically, but there exists a feeling in Washington that the only Americans who'd have bank accounts or mutual funds outside the US are "fat cats" (get it?) trying to abuse the tax system rather than pretty typical taxpayers with pretty typical life choices.
- Natsu 6y agoThanks for clarifying, I know you have a lot of first hand experience with this.
- clarkmoody 6y agoWhy not just put a price on "we come rescue you" insurance from the US Gov? Certainly that's cheaper than 40% of your income?
- koolba 6y agoA number of countries already offer that type of package: https://www.vanityfair.com/news/2020/07/how-carlos-ghosn-escaped-japan https://www.vanityfair.com/news/2020/07/how-carlos-ghosn-esc...
- snuxoll 6y agoWhile I consider this bullshit, they claim that authority based on your status as a US Citizen. Your state of domicile has similar claims to income made from out-of-state sources.
- deathanatos 6y agoOkay, sure, but these people are NH residents taxed by MA. MA is claiming taxation over people who aren't its subjects…
- gnicholas 6y agoYes, but they give deductions/credits for foreign taxes paid. There is also an income exclusion for the first $107,000 of earned income. So what MA is doing is much worse in that respect. It's better in the sense that they aren't going after the employees' non-MA-related income, like real estate or investment income, but they would have no grounds to do that because these people are not MA residents.