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I'm reading the comments above and see the reminder to not be snarky. I'm not trying to be snarky with the following question. I can understand their financial

by xrd 4y ago

I'm reading the comments above and see the reminder to not be snarky. I'm not trying to be snarky with the following question. I can understand their financial regulations make more sense. But, they aren't contributing to the roads that US hedge fund operators drive on, right? Or, the airports out of which they fly? If I go further with your statement that their financial regulations make sense, should I interpret that as "US does taxation wrong" (or, it is incompetent with second order effects, etc)? But, even if the US taxation is wrong or not optimal, how do things like roads and airports get funded in the country in which the person resides? Is this completely wrongheaded? I don't understand how a citizen of one state can opt out of the taxation structure while still reaping the benefits of living there? Is this perspective incorrect?

sokoloff 4y ago
The taxes in country A get paid when person Pa brings their earnings home as income. The taxes in country B get paid when Pb does the same.
simple-thoughts 4y ago
Your perspective is correct but missing a critical fact. The hedge fund manager still pays taxes in his home country for his earnings abroad. So he still pays the taxes for those services. Where it gets more crazy is if the hedge fund manager is a US citizen but hasn’t lived in the US for decades. The USG still requires he pays taxes, even though he isn’t using any services. That’s because taxes aren’t a free agreement to purchase services but are rather an exercise of force.
- koolba 4y ago
  > The USG still requires he pays taxes, even though he isn’t using any services. That’s because taxes aren’t a free agreement to purchase services but are rather an exercise of force. That and paying for the right to 86 it back to the USA when things get too hot elsewhere. Think of it as an out of the money put option. It’s massively overpriced until it’s not.
  - deleted 4y ago
    [deleted]
  - yieldcrv 4y ago
    Didn't work that well during Covid. US Passport didn't afford much. Temporarily became one of the least useful passports.
yieldcrv 4y ago
I would say this is wrongheaded. There are compliant ways to use offshore jurisdictions that result in not paying annual taxes, there are compliant ways to use domestic tax vehicles to not pay any tax as well. The IRS helps you in both circumstances. The framing by politicians and their constituents is just inaccurate. The roads and airports that were going to get funded still get funded. No amount of taxation is going to fix the neglected area with poor people, its not going to happen. The taxes will continue to pay interest in debt that governments issue, excessive amounts of capital that… will never go to the neglected side of town ever. Your civic duty is reporting tax events, paying what is legally owed. Nobody knows what “fair share” is. And then… its not even about tax. Its about regulatory burden. Bureaucratic requirements to accomplish anything. Caymans has a fairly seamless and modern processes, intelligent and competent staff. Most jurisdictions do not. Its easy to think “there must be a reason for the bureaucratic requirements… in my country”, which country? USA? Netherlands? China? Surely one is less true than the other, the point here is to spark introspection. Cayman services all, it doesn't have the geopolitical baggage while adhering to broad sanctions lists.

by xrd 4y ago

sokoloff 4y ago

The taxes in country A get paid when person Pa brings their earnings home as income. The taxes in country B get paid when Pb does the same.

simple-thoughts 4y ago

Your perspective is correct but missing a critical fact. The hedge fund manager still pays taxes in his home country for his earnings abroad. So he still pays the taxes for those services. Where it gets more crazy is if the hedge fund manager is a US citizen but hasn’t lived in the US for decades. The USG still requires he pays taxes, even though he isn’t using any services. That’s because taxes aren’t a free agreement to purchase services but are rather an exercise of force.

koolba 4y ago
> The USG still requires he pays taxes, even though he isn’t using any services. That’s because taxes aren’t a free agreement to purchase services but are rather an exercise of force. That and paying for the right to 86 it back to the USA when things get too hot elsewhere. Think of it as an out of the money put option. It’s massively overpriced until it’s not.
- deleted 4y ago
  [deleted]
- yieldcrv 4y ago
  Didn't work that well during Covid. US Passport didn't afford much. Temporarily became one of the least useful passports.

yieldcrv 4y ago

I would say this is wrongheaded. There are compliant ways to use offshore jurisdictions that result in not paying annual taxes, there are compliant ways to use domestic tax vehicles to not pay any tax as well. The IRS helps you in both circumstances. The framing by politicians and their constituents is just inaccurate. The roads and airports that were going to get funded still get funded. No amount of taxation is going to fix the neglected area with poor people, its not going to happen. The taxes will continue to pay interest in debt that governments issue, excessive amounts of capital that… will never go to the neglected side of town ever. Your civic duty is reporting tax events, paying what is legally owed. Nobody knows what “fair share” is. And then… its not even about tax. Its about regulatory burden. Bureaucratic requirements to accomplish anything. Caymans has a fairly seamless and modern processes, intelligent and competent staff. Most jurisdictions do not. Its easy to think “there must be a reason for the bureaucratic requirements… in my country”, which country? USA? Netherlands? China? Surely one is less true than the other, the point here is to spark introspection. Cayman services all, it doesn't have the geopolitical baggage while adhering to broad sanctions lists.