Did you read the comments in the artciel? A lot of hate out there for 'expats making it big by not paying taxes" and a lot of disinformation.GSM8 wrote:FATCA is not the underlying issue, the antiquated dogmatic US policy of Citizenship Based Taxation (CBT) is. In fact FATCA's original intention of catching tax evaders in America stashing money abroad is in itself laudable. EU is also in the process of implementing a similar information exchange model, but one that is based on residency not citizenship. It is the CBT regime that results in legitimate expats being caught in a "US person based" FATCA reporting morass, ruining investment/savings options at best, and criminalizing minor unintentional mistakes (for both the bank and customer) at worst.
US is the only country in the world (other than Eritrea which the US has castigated for precisely that reason) that taxes its citizens regardless of where they live in the world:
http://en.wikipedia.org/wiki/Internatio ... itizenship
US needs to adopt Residence Based Taxation (RBT) like the rest of the world, and CBT needs to get scrapped not FATCA.
Yes, some of the comments are just deja vu. There is a lot of biased propaganda against expats within the government and among the public in America. The false impression of all us being "fat cat tax scamming expats" has always evoked a certain nationalistic fervor (goes back to Civil War, then 1920's opulence, Cook vs. Tait etc). There is also a huge misconception in the US that somehow paying taxes is a patriotic duty. It isn't. Paying taxes is indeed a duty and a very important one for that matter; providing the state with the cash flow it needs to run itself and ultimately provide the citizens (residents) with the services they expect to receive in return for their tax money. However, we pay our taxes as citizens not patriots and therefore one must use the appropriate adjective. Paying taxes is a civic duty not a patriotic one. In any case, this has contributed to making CBT the preferred policy line for our lawmakers, despite the underlying premise being inherently baseless. And majority of us expats unfortunately take a passive approach ourselves, often convincing ourselves with defeatist attitudes like "oh well, it isn't so bad, I can put up with it". This is worsened by the lack of any political leverage whatsoever.PNGMK wrote:Did you read the comments in the artciel? A lot of hate out there for 'expats making it big by not paying taxes" and a lot of disinformation.
3999 last year. The 'cost' has gone up though (if you announce offically).bgd wrote:There have always been Americans who have renounced citizenship because of the tax regime. Since FATCA there has been a spike in such cases. I guess people just reached that tipping point.
I don't remember the numbers now but they were insignificant given the overall population.
Once you work in the USA and pay taxes you risk being stuck in that system as I understand it.movingtospore wrote:The husband and I were talking about a US opportunity the other day (we're Canadian). Though in theory we could become dual citizens we were looking through how to make absolutely sure we never become or are considered as US citizens because of FATCA. Not because we are crooks (or rich, for that matter) but because of the enormous headache this would create for us and potentially our children.
How would you become dual citizens? If you are claiming citizenship by right of descent (under certain conditions, foreign born to one or two American citizens), you already have that if you meet the conditions and are doomed with respect to taxes if the USA finds out about you.movingtospore wrote:The husband and I were talking about a US opportunity the other day (we're Canadian). Though in theory we could become dual citizens we were looking through how to make absolutely sure we never become or are considered as US citizens because of FATCA. Not because we are crooks (or rich, for that matter) but because of the enormous headache this would create for us and potentially our children.
Doomed is an understatement as to your fate if US ever finds outStrong Eagle wrote:if you meet the conditions and are doomed with respect to taxes if the USA finds out about you.
For Canadian and Mexicans in many professional categories, NAFTA visa is much easier and quicker not subject to quota restrictions like other worker visa categories including the most common H1BStrong Eagle wrote:You must be legally able to work in the USA and there are two ways to achieve that.
This is normal and almost every country in the world (although not Singapore) taxes you on worldwide income once you are resident in that country (and this is justified as you are enjoying the civic amenities of that country, so why should any of your income be exempt). What is abnormal is for that country to chase you around the world with a secondary claim on tax and penalties on whatever you earn anywhere in the world as long as you live (whilst the country in which you are living is already legitimately taxing you). Such distinction belongs only to the US and Eritrea (and a few other countries in the past including Third Reich)Strong Eagle wrote:If you opt to become a permanent worker through a visa program or obtaining a green card (relatively easy for Canadians to obtain), then you are subject to the same tax rules as a citizen, including the fact that your world wide income will be taxed by the USA.
Strong Eagle wrote:This is only the basics, and the alien taxation laws have many "ifs" and "buts", most of which seem to be designed to ensnare as many as possible into the US tax system.
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