4 ms·

AFAIK U.S. is the only country that makes you pay tax even if you are tax resident of different country. Ironically it does not apply to corporations that fail

AFAIK U.S. is the only country that makes you pay tax even if you are tax resident of different country. Ironically it does not apply to corporations that fail to pay billions in tax.

atlasunshrugged 5y ago
Also Eritrea :) Jokes aside, there is a waiver if you are earning less than ~$150,000 as a single earner where you're not double taxed.
marton78 5y ago
Well, that military won't pay itself...
- midasuni 5y ago
  Having a US passport entitles citizens to a lot of benefits globally, those benefits have to be paid for. It would seem odd that you can benefit from the US growing up, and once you make it, you can move to the Cayman Islands and not pay for the benefits you have received
  - marcan_42 5y ago
    Having a European passport entitles citizens to a lot of benefits globally too, but oddly enough I haven't paid taxes to any EU country since the day I moved out and nobody expects me to. I'm not sure why the US thinks it is so special that it is entitled to tax people who happen to be born there even if they have nothing to do with the country any more. You aren't taking a loan on taxes during your childhood; that period is sponsored by everyone else. It goes both ways.
    - gok 5y ago
      Americans are weirdly obsessed with the idea of rich expats not paying US taxes.
  - geomark 5y ago
    Can you mention some of those benefits?
  - romanovcode 5y ago
    If you're talking about visa-free travels around the world than I have to break it to you: European passports are stronger than US. Just FYI.
Trias11 5y ago
>> makes you pay tax even if you are tax resident of different country It's not that someone is tax resident of different country. The disgusting part of this IRS racket is that US forces people to pay taxes to US even if they no longer live there. Eritrea is the only another one like US in this aspect.
carl_dr 5y ago
The US and Eritrea. I knew this was a thing, but I had always assumed a US citizen living abroad only ended up paying tax to the IRS if the tax they paid to the foreign government was less than what they would have paid to the US, and only the difference is paid. But it seems that’s not the case, and you get an exemption for “only” the first $108,700 of your earnings. As with everything the IRS does, it seems complex and full of exemptions, but I have read that (badically) correctly? You could end you being double taxed if you earn more than that?
- Trias11 5y ago
  Why person needs to go through the hassles and expenses to file tax return every year to the country where he/she doesn't not live in any longer? What kind of state sponsored racket is this?
  - vinay427 5y ago
    With the major caveat below, on the face of it, it doesn't seem much less arbitrary to tax by citizenship than by residence in certain cases. For instance, as someone that grew up in the US and went to public schools, I certainly used far more public resources there than in my current country of residence, and would also (as a citizen) have access to an indefinite further amount of resources such as consular representation, retirement benefits if retiring there, etc. It seems about as arbitrary to me to pay taxes in a country that I cannot unilaterally choose to continue living in, due to immigration obstacles. However, given that the global consensus is to tax by residence, the US should absolutely change its policy to avoid the hassles due to this inconsistency.
    - marcan_42 5y ago
      It's possible to be a citizen of a country without having ever used any resources from it (it's also possible to have dual citizenship, which complicates things). Taxation isn't about retroactively collecting money for the resources you used during your childhood, it's about collecting money for the resources you're using today. Children, the unemployed, etc. are sponsored by the rest, they aren't taking a loan on their taxes.

AFAIK U.S. is the only country that makes you pay tax even if you are tax resident of different country. Ironically it does not apply to corporations that fail to pay billions in tax.

atlasunshrugged 5y ago

Also Eritrea :) Jokes aside, there is a waiver if you are earning less than ~$150,000 as a single earner where you're not double taxed.

marton78 5y ago

Well, that military won't pay itself...

midasuni 5y ago
Having a US passport entitles citizens to a lot of benefits globally, those benefits have to be paid for. It would seem odd that you can benefit from the US growing up, and once you make it, you can move to the Cayman Islands and not pay for the benefits you have received
- marcan_42 5y ago
  Having a European passport entitles citizens to a lot of benefits globally too, but oddly enough I haven't paid taxes to any EU country since the day I moved out and nobody expects me to. I'm not sure why the US thinks it is so special that it is entitled to tax people who happen to be born there even if they have nothing to do with the country any more. You aren't taking a loan on taxes during your childhood; that period is sponsored by everyone else. It goes both ways.
  - gok 5y ago
    Americans are weirdly obsessed with the idea of rich expats not paying US taxes.
- geomark 5y ago
  Can you mention some of those benefits?
- romanovcode 5y ago
  If you're talking about visa-free travels around the world than I have to break it to you: European passports are stronger than US. Just FYI.

Trias11 5y ago

>> makes you pay tax even if you are tax resident of different country It's not that someone is tax resident of different country. The disgusting part of this IRS racket is that US forces people to pay taxes to US even if they no longer live there. Eritrea is the only another one like US in this aspect.

carl_dr 5y ago

The US and Eritrea. I knew this was a thing, but I had always assumed a US citizen living abroad only ended up paying tax to the IRS if the tax they paid to the foreign government was less than what they would have paid to the US, and only the difference is paid. But it seems that’s not the case, and you get an exemption for “only” the first $108,700 of your earnings. As with everything the IRS does, it seems complex and full of exemptions, but I have read that (badically) correctly? You could end you being double taxed if you earn more than that?

Trias11 5y ago
Why person needs to go through the hassles and expenses to file tax return every year to the country where he/she doesn't not live in any longer? What kind of state sponsored racket is this?
- vinay427 5y ago
  With the major caveat below, on the face of it, it doesn't seem much less arbitrary to tax by citizenship than by residence in certain cases. For instance, as someone that grew up in the US and went to public schools, I certainly used far more public resources there than in my current country of residence, and would also (as a citizen) have access to an indefinite further amount of resources such as consular representation, retirement benefits if retiring there, etc. It seems about as arbitrary to me to pay taxes in a country that I cannot unilaterally choose to continue living in, due to immigration obstacles. However, given that the global consensus is to tax by residence, the US should absolutely change its policy to avoid the hassles due to this inconsistency.
  - marcan_42 5y ago
    It's possible to be a citizen of a country without having ever used any resources from it (it's also possible to have dual citizenship, which complicates things). Taxation isn't about retroactively collecting money for the resources you used during your childhood, it's about collecting money for the resources you're using today. Children, the unemployed, etc. are sponsored by the rest, they aren't taking a loan on their taxes.