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I agree, but the key problem is that the U.S. tax system is structured to collect taxes after the period to which they relate. This is done to minimize the comp
by rprasad 14y ago
I agree, but the key problem is that the U.S. tax system is structured to collect taxes after the period to which they relate. This is done to minimize the compliance burden on taxpayers and to minimize the IRS' burden in ensuring compliance. The alternative is to collect all taxes as they accrue (like sales taxes are now), which would significantly increase compliance costs for taxpayers and the IRS's workload.
The primary argument is that Eduardo owes these taxes because the underlying income was earned while he was an American citizen/resident. It's not a matter of what he is doing right now--it's a matter of what he was doing back then.
- beagle3 14y ago> The primary argument is that Eduardo owes these taxes because the underlying income was earned while he was an American citizen/resident. It's not a matter of what he is doing right now--it's a matter of what he was doing back then. Assuming technical compliance with the law, this argument is moot. The law requires payment of capital gains based on fair market value at the day of renouncing citizenship.
- joelrunyon 14y agoIt sounds like what you really want to do is change the tax law.