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Some states actually have laws specifically to prevent this. For example, if you work remote for a company based in NY, PA, CT, DE, AR, or NE; your income is t

Some states actually have laws specifically to prevent this. For example, if you work remote for a company based in NY, PA, CT, DE, AR, or NE; your income is taxable in that state regardless of where you live or work. This is known as a "convenience of the employer" test. In fact, before a certain SCOTUS ruling you couldn't even claim a refund on that tax for your residence state's tax return (and even after, that refund is taxable). California is already considering a wealth exit tax that would apply 10 years worth of tax nexus to anyone who leaves the state. I'd complain about this more, as it goes against the whole concept of freedom of movement... but the US already does the same thing. Emigrate from the US and you'll still be expected to pay US taxes on foreign income. I've heard there's a rule that exempts you from said taxes if you spend the entire tax year outside the US. Some people also take the really risky step of throwing out their US citizenship... which is actually grounds to be permanently banned from entering the US for any reason if they find out that you did so for tax purposes.

jdmichal 6y ago
I worked for a company based in NY and had to certify every year that I worked in NY state for less than 10 days a year. If I couldn't make that certification, then I would have owed the state taxes.
kbenson 6y ago
> Emigrate from the US and you'll still be expected to pay US taxes on foreign income. That's because you still have U.S. citizenship. You can give that up and not be taxed, as I understand it. Also, it looks like there are provisions to give you exclusions on your foreign income,if you have any.[1] That seems sane to me, if you live their the whole year and that location is your tax base, then you can exclude all the income from their in your U.S. taxes. But living elsewhere won't protect you from U.S. taxes if you still have the benefit of U.S. citizenship and make a lot of money from the U.S. California considering a wealth exit tax seems a bit different on first glance, but I could see it making sense if it's somewhat similar in use. If you make your money from California and continue to after moving from there to elsewhere, that money being eligible to be taxed by California because otherwise it's extracting the benefit of California's laws and markets without paying into the system that provides them. 1: https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion https://www.irs.gov/individuals/international-taxpayers/fore...
- ljf 6y ago
  As a Brit, I can work wherever I can find work (and legally work) around the world, earn a fortune and not pay any tax in the UK, /and/ keep my citizenship. I only would pay tax to the UK on income I earn here (which in itself leads to all kinds of strange and dodgy scenarios in terms of people avoiding paying taxes here)
  - alpha_squared 6y ago
    This is ultimately political and comes down to perspective and opinion. As a citizen, you benefit from many things of your home country regardless of whether or not you reside there. Such as, for example, your home country's ability to exert pressure on the government of where you reside when you're unjustly arrested/detained. There's also access to the consulate of your home country and all services you have access to from the resident country. All of that stuff is funded somehow and it can seem unfair that only those who live within the home country's borders fund those things while those who reside elsewhere get to take advantage of it all without paying anything into it. For Americans, for better or worse, its very large stick (the military) affords its citizens all sorts of benefits while traveling/living abroad.
    - FooHentai 6y ago
      There’s also the behaviour it incentivises - if you’ve moved abroad and intend to stay there long term, secure citizenship there and renounce your American citizenship to avoid double taxation. The USA isn’t exactly hurting for new citizens and it’s probably desirable to have expats incentivised to deliberately relinquish their passports. Mind you I’m looking at this from the perspective of here in New Zealand, where there’s regular media stories about Australia deporting NZ citizens who moved over there as kids and ended up criminals. There’s no incentives to relinquish an NZ passport so Australia can revoke their citizenship, deport, and they become NZs problem.
      - Johnny555 6y ago
        if you’ve moved abroad and intend to stay there long term, secure citizenship there and renounce your American citizenship to avoid double taxation That should be "intend to stay there forever", since renouncing your USA citizenship is typically permanent, once you renounce citizenship, it's difficult or impossible to regain it.
pests 6y ago
In the case of Americans outside the US... You can write off foreign taxes paid up to a limit on the American side.
- sneak 6y ago
  Yes, but not the income so taxed, beyond the foreign earned income exclusion, which is relatively low.
dragonwriter 6y ago
> it goes against the whole concept of freedom of movement Freedom of movement is free as in libre, not free as in gratis. “You owe taxes if you leave” isn't a violation of freedom of movement.
problemPlaster 6y ago
>Some people also take the really risky step of throwing out their US citizenship It is actually quite a lengthy application process to try and renounce your US Citizenship, and the federal government can simply deny your application.

jdmichal 6y ago

I worked for a company based in NY and had to certify every year that I worked in NY state for less than 10 days a year. If I couldn't make that certification, then I would have owed the state taxes.

kbenson 6y ago

> Emigrate from the US and you'll still be expected to pay US taxes on foreign income. That's because you still have U.S. citizenship. You can give that up and not be taxed, as I understand it. Also, it looks like there are provisions to give you exclusions on your foreign income,if you have any.[1] That seems sane to me, if you live their the whole year and that location is your tax base, then you can exclude all the income from their in your U.S. taxes. But living elsewhere won't protect you from U.S. taxes if you still have the benefit of U.S. citizenship and make a lot of money from the U.S. California considering a wealth exit tax seems a bit different on first glance, but I could see it making sense if it's somewhat similar in use. If you make your money from California and continue to after moving from there to elsewhere, that money being eligible to be taxed by California because otherwise it's extracting the benefit of California's laws and markets without paying into the system that provides them. 1: https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion https://www.irs.gov/individuals/international-taxpayers/fore...

ljf 6y ago
As a Brit, I can work wherever I can find work (and legally work) around the world, earn a fortune and not pay any tax in the UK, /and/ keep my citizenship. I only would pay tax to the UK on income I earn here (which in itself leads to all kinds of strange and dodgy scenarios in terms of people avoiding paying taxes here)
- alpha_squared 6y ago
  This is ultimately political and comes down to perspective and opinion. As a citizen, you benefit from many things of your home country regardless of whether or not you reside there. Such as, for example, your home country's ability to exert pressure on the government of where you reside when you're unjustly arrested/detained. There's also access to the consulate of your home country and all services you have access to from the resident country. All of that stuff is funded somehow and it can seem unfair that only those who live within the home country's borders fund those things while those who reside elsewhere get to take advantage of it all without paying anything into it. For Americans, for better or worse, its very large stick (the military) affords its citizens all sorts of benefits while traveling/living abroad.
  - FooHentai 6y ago
    There’s also the behaviour it incentivises - if you’ve moved abroad and intend to stay there long term, secure citizenship there and renounce your American citizenship to avoid double taxation. The USA isn’t exactly hurting for new citizens and it’s probably desirable to have expats incentivised to deliberately relinquish their passports. Mind you I’m looking at this from the perspective of here in New Zealand, where there’s regular media stories about Australia deporting NZ citizens who moved over there as kids and ended up criminals. There’s no incentives to relinquish an NZ passport so Australia can revoke their citizenship, deport, and they become NZs problem.
    - Johnny555 6y ago
      if you’ve moved abroad and intend to stay there long term, secure citizenship there and renounce your American citizenship to avoid double taxation That should be "intend to stay there forever", since renouncing your USA citizenship is typically permanent, once you renounce citizenship, it's difficult or impossible to regain it.

pests 6y ago

In the case of Americans outside the US... You can write off foreign taxes paid up to a limit on the American side.

sneak 6y ago
Yes, but not the income so taxed, beyond the foreign earned income exclusion, which is relatively low.

dragonwriter 6y ago

> it goes against the whole concept of freedom of movement Freedom of movement is free as in libre, not free as in gratis. “You owe taxes if you leave” isn't a violation of freedom of movement.

problemPlaster 6y ago

>Some people also take the really risky step of throwing out their US citizenship It is actually quite a lengthy application process to try and renounce your US Citizenship, and the federal government can simply deny your application.