Opinion: The U.S. government’s stupid tax war on expatriates

[Umka36 781]

http://www.marketwatch.com/story/the-us-governments-stupid-tax-war-on-expatriates-2015-02-20?siteid=yhoof2

[JohnR! 5,495]

It takes two to tango or fight. If you don't want to have to pay US taxes you're not mandated to keep your citizenship.

Isn't it intriguing it took Johnson this long to figure it out?

It's not a war on expats anymore than it is a war on the rest of us who live in the US.

Edited February 23, 2015 by JohnR!

[Merrytooth 5,748]

So US govt is discouraging US citizens from working abroad by introducing so many tax rules for expats that spun like spider web.

[JohnR! 5,495]

These tax rules have existed for a long time. It's nothing new...

So US govt is discouraging US citizens from working abroad by introducing so many tax rules for expats that spun like spider web.

[Dakine10 5,452]

So US govt is discouraging US citizens from working abroad by introducing so many tax rules for expats that spun like spider web.

No, the issue is US citizens working abroad feel like they shouldn't have to deal with the IRS. I don't like it either. I'd rather not pay taxes, but it's the law.

If it's easier, think of it this way, Just as immigration law is written to presume everyone coming to US is an intending immigrant, tax laws are also written to presume that everyone who leaves is doing it for tax purposes. If you are not leaving for that reason, and if you have the mindset of someone who will be returning, it's rare to end up with additional tax.

So if you really don't want to deal with American law, you have the option to renounce citizenship. That's actually an awesome law - not every country gives you that right. And if you want to keep your ties to the US, just fill out the right forms and make sure you pay the taxes you should. Tax treaties are such that 99.9 % of people are done at that point.

Or change the law. For the moment, more people seem to prefer giving up citizenship than trying to change the law. That seems to indicate that many people actually are leaving to avoid taxation.

[aaron2020 11,651]

If you want the privileges of US citizenship, then report your income and pay taxes like the rest of us. There is no free ride.

A USC living abroad enjoys the privileges of having a US passport and help from US embassies. They get services.

What is wrong with paying taxes for those privileges?

Don't want to pay those taxes, then give up US citizenship and the privileges that comes with it. Simple solution.

[I AM NOT THAT GUY 5,715]

Don't want to pay those taxes, then give up US citizenship and the privileges that comes with it. Simple solution.

A valid path which many have chosen. However, that money is lost to the treasury and now Congress is considering ways to bring some of that money back home, at a discount.

[Darnell 8,478]

I paid my taxes when I lived in Singapore and China and UK.

What's the problem? Heck, there's even an exemption amount.

As to Johnson, the Mayor of London, he's not the poster boy for this. He's giving up his USA citizenship so he can run for MP next voting season. He doesn't care about having to pay the tax.

Edited February 24, 2015 by Darnell