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Why does US tax money coming back into the country and at what rate? Wouldn't you want to encourage money to be made elsewhere and brought back to the states fo

Why does US tax money coming back into the country and at what rate? Wouldn't you want to encourage money to be made elsewhere and brought back to the states for investment? or am i fundamentally misunderstanding economics?

vkou 6y ago
US citizens are taxed on global income regardless of whether they live in the US, or whether any of their money will ever enter the US. It's only right for US corporations to be taxed the same way. Most of these insane financial contortions are done because they aren't taxed on foreign, non-repatriated earnings - creating an incentive to convert domestic earnings into 'foreign' ones, that get repatriated the next time there's a tax holiday. I personally would love to earmark my personal income as foreign-sourced, and to not pay any taxes on it until I get a tax discount... But if I were to do that, I would go to jail for tax evasion.
- loosetypes 6y ago
  “The only major nation that taxes its citizens (and green card holders) regardless of where they live is the United States.” “Some lists of countries that tax citizens and legal residents on their worldwide income include Libya, North Korea, Eritrea and the Philippines.” Both from the first search result, https://premieroffshore.com/which-countries-tax-worldwide-income/ https://premieroffshore.com/which-countries-tax-worldwide-in.... At least we’re in good company?
- AdrianB1 6y ago
  Is it right? I know a lady that has dual-citizenship because a parent is US citizen and one Australian; she had to move in US after living 25 years exclusively in Australia because she had to pay taxes in both countries, in Australia as a resident citizen and in US because she was a citizen. The only other option was to give up to US citizenship, like others do. Is it right?
  - vkou 6y ago
    If you paid foreign tax on foreign earnings you can deduct it from your US taxes. You still have to file, and to pay the difference, if any, every year.

vkou 6y ago

US citizens are taxed on global income regardless of whether they live in the US, or whether any of their money will ever enter the US. It's only right for US corporations to be taxed the same way. Most of these insane financial contortions are done because they aren't taxed on foreign, non-repatriated earnings - creating an incentive to convert domestic earnings into 'foreign' ones, that get repatriated the next time there's a tax holiday. I personally would love to earmark my personal income as foreign-sourced, and to not pay any taxes on it until I get a tax discount... But if I were to do that, I would go to jail for tax evasion.

loosetypes 6y ago
“The only major nation that taxes its citizens (and green card holders) regardless of where they live is the United States.” “Some lists of countries that tax citizens and legal residents on their worldwide income include Libya, North Korea, Eritrea and the Philippines.” Both from the first search result, https://premieroffshore.com/which-countries-tax-worldwide-income/ https://premieroffshore.com/which-countries-tax-worldwide-in.... At least we’re in good company?
AdrianB1 6y ago
Is it right? I know a lady that has dual-citizenship because a parent is US citizen and one Australian; she had to move in US after living 25 years exclusively in Australia because she had to pay taxes in both countries, in Australia as a resident citizen and in US because she was a citizen. The only other option was to give up to US citizenship, like others do. Is it right?
- vkou 6y ago
  If you paid foreign tax on foreign earnings you can deduct it from your US taxes. You still have to file, and to pay the difference, if any, every year.