Can someone explain the history of the US worldwide tax regime? Why is the US so out of step with the rest of the world on this?
U.S. Moves to Thwart Use of Foreign Acquisitions to Dodge Taxes
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Re: U.S. Moves to Thwart Use of Foreign Acquisitions to Dodge Taxes
#32[deleted]
Re: U.S. Moves to Thwart Use of Foreign Acquisitions to Dodge Taxes
#33>Yet even by the Treasury Department’s own admission, the latest rules will not be enough to completely halt the flow of companies seeking to renounce their American citizenship, just as the two previous rule changes did not. Such a move would be possible only with an overhaul of the tax rules by Congress, which few believe will happen soon.
I would have loved to have more info about that. What other loopholes didn't this fix? What are they proposing Congress do in this overhaul?
Re: U.S. Moves to Thwart Use of Foreign Acquisitions to Dodge Taxes
#34Earlier quoted context omitted.
And the US double taxes their citizens living abroad the same way. As an American making the same money as your non-american co-worker you are left with a lot less just for having a US passport. It is even possible you have never set foot in the US yet are required to pay uncle sam's taxes. Wanna get rid of your US passport? Not before you pay 10 years projected taxes and pay an abhorrent fee. You will also be listed…
The fist $100,000 income isn't taxed this way[1]. And it's not abhorrent. If you earned enough money to think it's advantageous to lose one of the most valuable passports in the world, you probably earned that money in large parts due to the support of the people and infrastructure of the United States. You don't get to drop your duties once you win big. [1] $97,600 for 2013, $99,200 for 2014 and $100,800 for 2015
Well, you are a conceited jingoist if ever i saw one.
Re: U.S. Moves to Thwart Use of Foreign Acquisitions to Dodge Taxes
#35Earlier quoted context omitted.
Are countries with a territorial tax system hurt by businesses leaving in order to seek out a lower tax rate? That seems to be the argument the US government is making - although I haven't seen any data - anyone have a link?
They do. But it doesn't work even in the US's case. US companies will routinely "sell" their intellectual property to a subsidiary in e.g. Ireland and then license to back to the US company to avoid paying US taxes. There are some highly successful US companies who, per the books, make nearly $0/year profit within the US.
They should charge executives Irish income taxes if they pull that off.
(While Ireland's corporate taxes are low, their personal taxes are ~59% over ~100k, and that _includes_ capital gains, and a lot of things that are tax advantaged in the states)
Re: U.S. Moves to Thwart Use of Foreign Acquisitions to Dodge Taxes
#36For those of you starting companies that may one day be worth a lot of money, there is a key insight to draw from this: it is better (from a tax point of view) to be a foreign company than a US company. This is especially true if you expect most of your future customers to be outside the US. In the long run this gives an operating advantage to foreign corporations -- again for tax efficiency only. In the intermediate…
> The US tax system is King Canute. Interesting, I had never heard this phrase before. Are you referring to this? https://en.wikipedia.org/wiki/King_Canute_and_the_waves
Yes that is what I meant.
The pointless arrogance of the powerful is the lesson.
This is expressed in various ways, from the HN chortling about ignorant legislators attempting to define pi = 3, to the extremely correct observation that the bond market holds far more power than any central bank.
Politicians are mortal and fallible.
Re: U.S. Moves to Thwart Use of Foreign Acquisitions to Dodge Taxes
#37Earlier quoted context omitted.
And the US double taxes their citizens living abroad the same way. As an American making the same money as your non-american co-worker you are left with a lot less just for having a US passport. It is even possible you have never set foot in the US yet are required to pay uncle sam's taxes. Wanna get rid of your US passport? Not before you pay 10 years projected taxes and pay an abhorrent fee. You will also be listed…
The fist $100,000 income isn't taxed this way[1]. And it's not abhorrent. If you earned enough money to think it's advantageous to lose one of the most valuable passports in the world, you probably earned that money in large parts due to the support of the people and infrastructure of the United States. You don't get to drop your duties once you win big. [1] $97,600 for 2013, $99,200 for 2014 and $100,800 for 2015
its very typical for people to want their cake and eat it too. They want the benefits of having the US passport but don't want to pay for it.
Re: U.S. Moves to Thwart Use of Foreign Acquisitions to Dodge Taxes
#38Earlier quoted context omitted.
The fist $100,000 income isn't taxed this way[1]. And it's not abhorrent. If you earned enough money to think it's advantageous to lose one of the most valuable passports in the world, you probably earned that money in large parts due to the support of the people and infrastructure of the United States. You don't get to drop your duties once you win big. [1] $97,600 for 2013, $99,200 for 2014 and $100,800 for 2015
American Imperialism at its finest. "Since we're the best country in the world, you couldn't have possibly become rich without us, and therefore you must pay to leave us!"
Greatness aside, you probably couldn't have become rich without roads, national defense, clean water...
Re: U.S. Moves to Thwart Use of Foreign Acquisitions to Dodge Taxes
#39Earlier quoted context omitted.
And the US double taxes their citizens living abroad the same way. As an American making the same money as your non-american co-worker you are left with a lot less just for having a US passport. It is even possible you have never set foot in the US yet are required to pay uncle sam's taxes. Wanna get rid of your US passport? Not before you pay 10 years projected taxes and pay an abhorrent fee. You will also be listed…
The fist $100,000 income isn't taxed this way[1]. And it's not abhorrent. If you earned enough money to think it's advantageous to lose one of the most valuable passports in the world, you probably earned that money in large parts due to the support of the people and infrastructure of the United States. You don't get to drop your duties once you win big. [1] $97,600 for 2013, $99,200 for 2014 and $100,800 for 2015
Not sure Boris Johnson (who has dual nationality) would agree when the IRS wanted their share of his mothers estate.
How woudl you feel if HMRC wanted a share of your parents estate.
Re: U.S. Moves to Thwart Use of Foreign Acquisitions to Dodge Taxes
#40Earlier quoted context omitted.
And the US double taxes their citizens living abroad the same way. As an American making the same money as your non-american co-worker you are left with a lot less just for having a US passport. It is even possible you have never set foot in the US yet are required to pay uncle sam's taxes. Wanna get rid of your US passport? Not before you pay 10 years projected taxes and pay an abhorrent fee. You will also be listed…
The fist $100,000 income isn't taxed this way[1]. And it's not abhorrent. If you earned enough money to think it's advantageous to lose one of the most valuable passports in the world, you probably earned that money in large parts due to the support of the people and infrastructure of the United States. You don't get to drop your duties once you win big. [1] $97,600 for 2013, $99,200 for 2014 and $100,800 for 2015
>you probably earned that money in large parts due to the support of the people and infrastructure of the United States
Or, you know, not. It's ridiculous to suggest that if you earn money abroad, American people and infrastructure are largely responsible for your success.
It's in Dutch, but feel free to translate:
http://nos.nl/nieuwsuur/artikel/2044332-amerikaanse-belastin...