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To: RKBA Democrat
One of the ways in which the US differs from most countries, including the UK, is that it has worldwide taxation. If you are a US citizen living abroad, you get a living exemption of (last time I looked) 80K, but owe US taxes on any excess. There are tax treaties with many countries, but you will pay the US extra when its rates are higher than those of the country you are residing in.

The only way out of this is forfeiting your US citizenship, which is a mighty big step to take. Not counting cultural and patriotic issues, but only talking finance, an exit also requires that you pay up on any unrealized capital gains as you exit.

It pains me to say this, but the country I grew up in, the land of the free, now has one of the most greedy and grasping tax systems of the civilized world. I've heard that overseas bankers in many countries don't even want your account if you are a US citizen.

4 posted on 11/29/2012 5:24:51 PM PST by Pearls Before Swine
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To: Pearls Before Swine

I think Eritrea is the only other third-world, socialist sh!t-hole that taxes citizens on their worldwide income.


7 posted on 11/29/2012 6:04:10 PM PST by Vide
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To: Pearls Before Swine
Not counting cultural and patriotic issues, but only talking finance, an exit also requires that you pay up on any unrealized capital gains as you exit.

Not if you get your assets out of the country *before* renouncing your citizenship.Of course such a plan might mean that you'd risk arrest if you ever tried to enter the country again.

8 posted on 11/29/2012 6:22:41 PM PST by Gay State Conservative (Benghazi: What Did Baraq Know And When Did He Know It?)
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To: Pearls Before Swine

They aren’t going to leave, as the British millionaires probably mostly didn’t leave either. All they have to do is fix it so they don’t recognize personal income. Many business owners have the option of declaring dividends or setting the salary they pay themselves out of the business, etc. They will just not declare dividends, pay themselves less, and so forth. There are many other ways.

The higher marginal tax rates go, the more attractive tax shelters are.


9 posted on 11/29/2012 6:30:02 PM PST by buwaya
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