Why would anyone with that much money want to come here permanently, and get the IRS all up in their business? The US is the only large country that taxes its citizens on their worldwide income (edit: regardless of residency status)
Yes, I know Republicans are always interested in reducing taxes on the rich, but right now these hypothetical rich people who want to come here have zero tax liability. All that $5m does is subject them to intrusive questions about where they are making their money every year when they file taxes.
That probably explains why he wants to buy one despite being a citizen already. I’d guess he thinks it’ll mean he wont be taxed on overseas income either. Figuring out whether he’s currently paying any, and if so how much is left as an exercise for the interested reader.
But there’s a US$130,000 exemption (the “foreign earned income exclusion”) and tax treaties with many countries, so not many people actually need to pay extra tax to the USA. Realistically, the only time you need to is if you earn more than US$130k and the country you live in has a lower tax rate than the USA.
What hurts much more is the “exit tax” when you leave the USA (as a green card holder after 7 years) or renounce your citizenship.
Sure, that’s completely true but unrelated to what you said in your original comment. I quote:
Why would anyone with that much money want to come here permanently
You were not talking about non-resident citizens, so stop moving the goalposts.
Plus, the US has one of the lowest tax rates of any of those “large countries” you talked about. So unless a US citizen resided in a country without a tax treaty with the US (there’s not many of them), they’re almost certainly being charged enough tax in their resident country that they pay $0 to the IRS on non-USA income.
Why would anyone with that much money want to come here permanently, and get the IRS all up in their business? The US is the only large country that taxes its citizens on their worldwide income (edit: regardless of residency status)
Yes, I know Republicans are always interested in reducing taxes on the rich, but right now these hypothetical rich people who want to come here have zero tax liability. All that $5m does is subject them to intrusive questions about where they are making their money every year when they file taxes.
Good news for rich people, this article says they won’t be taxed like a citizen
Their source is CNBC
Shit, that is a good deal, then. And probably exceeds Trump’s authority in what the can offer, but when has that stopped him before?
That probably explains why he wants to buy one despite being a citizen already. I’d guess he thinks it’ll mean he wont be taxed on overseas income either. Figuring out whether he’s currently paying any, and if so how much is left as an exercise for the interested reader.
That’s untrue. As a Canadian, I know we do, and I believe we’re far from alone. I don’t know why people keep perpetuating this myth.
Canada will not tax you if you are a citizen, but no longer reside in Canada. the US will.
Source: https://en.m.wikipedia.org/wiki/International_taxation
Look at the map. Very few countries tax all citizens regardless of their residency in their worldwide income like the US does
But there’s a US$130,000 exemption (the “foreign earned income exclusion”) and tax treaties with many countries, so not many people actually need to pay extra tax to the USA. Realistically, the only time you need to is if you earn more than US$130k and the country you live in has a lower tax rate than the USA.
What hurts much more is the “exit tax” when you leave the USA (as a green card holder after 7 years) or renounce your citizenship.
I’m assuming if someone had $5m just lying around to buy citizenship, their income is well beyond the $130k exemption
Sure, that’s completely true but unrelated to what you said in your original comment. I quote:
You were not talking about non-resident citizens, so stop moving the goalposts.
Plus, the US has one of the lowest tax rates of any of those “large countries” you talked about. So unless a US citizen resided in a country without a tax treaty with the US (there’s not many of them), they’re almost certainly being charged enough tax in their resident country that they pay $0 to the IRS on non-USA income.
I was talking about non-residents, that’s why I edited the comment. Resident non-citizens presumably have jobs here, and are already paying tax.
Being born here is increasingly an albatross to bear your entire life.
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