More gov't overreach: Taxing Americans anywhere, everywhere

Discussion in 'Civil Rights & Privacy' started by Mike, Aug 10, 2013.

  1. Mike

    Mike Founding Member Coach

    Most countries only tax the incomes of their own residents. Expatriates only report income and pay taxes in the countries in which they reside or earn income.

    Not so with the U.S. which tries to reach out tax everyone, everywhere.

    Bloomberg News in Business Week: Americans Giving Up Passports Jump Sixfold as Tougher Rules Loom (Aug 9 2013)

    The U.S., the only nation in the Organization for Economic Cooperation and Development that taxes citizens wherever they reside, is searching for tax cheats in offshore centers, including Switzerland, as the government tries to curb the budget deficit. Shunned by Swiss and German banks and facing tougher asset-disclosure rules under the Foreign Account Tax Compliance Act, more of the estimated 6 million Americans living overseas are weighing the cost of holding a U.S. passport.

    ...

    The additional compliance costs for companies to ensure that Americans they hire are filing the correct U.S. tax returns and asset-declaration forms are at least $5,000 per person, said Ledvina.

    For individuals, the costs are also rising. Getting a mortgage or acquiring life insurance is becoming almost impossible for American citizens living overseas, Ledvina said.

    “With increased U.S. tax reporting, U.S. accounting costs alone are around $2,000 per year for a U.S. citizen residing abroad,” the tax lawyer said. “Adding factors, such as difficulty in finding a bank to accept a U.S. citizen as a client, it is difficult to justify keeping the U.S. citizenship for those who reside permanently abroad.”
     

Share This Page