Time to Do Away With the Tax on Expats

“Only two nations in the world tax their citizens who live abroad. One of them is a small and vicious African dictatorship. The other is the world’s most powerful democracy. Does the U.S. really want to share this distinction with Eritrea?” asks Bloomberg View.

“It’s true that most expatriate Americans end up with no U.S. taxes to pay on their worldwide income, because they can exclude some income and offset host country taxes against what remains. Yet all must file and many do pay, because anomalies are rife. Apart from this, the principle is simply wrong. ”

“The taxation of Americans abroad was designed to deter draft dodgers who fled the country to avoid fighting the Civil War more than 150 years ago. From the beginning, in other words, bad intentions were assumed. Yet hardly any of the estimated 7.6 million U.S. expatriates today are trying to evade taxes — indeed, most pay more than they would at home.”

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  • t.c.green

    I agree. It is stupid and unfair to tax people who neither live or work in the US just because they are citizens. If we’re worried about tax dodgers then tax money brought into the US at the same rate as we do income tax. in fact just treat it as income straight up. Including social security and medicare taxes.

  • Mike

    The worst part is that filing from abroad is quite complicated and time-consuming and in the end, very few owe any US taxes.

    It’s entirely pointless.

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