We really ought to follow the rest of the world and make taxation a TERRITORIAL system, i.e., you get taxed in the country where you earned your income.
As it stands now, the IRS follows you wherever you live.
This isn't the principle by which this (used to be) Great nation was founded.
Happy 4th of July to all ( or what's left of it ).
I believe that's exactly how the U.S. tax code works right now. You get taxed in the country where you earned your income, but you still have to file a U.S. tax return. You get a credit on your U.S. tax return for the taxes you paid in the foreign country, so you only pay the difference (if any) between what is owed to the IRS and what you've already paid in the other tax jurisdiction.
It would be much simpler to just tariff foreign goods than to tax everyone’s income
It worked for our Founding Fathers...they sure didn’t envision this Globalist nonsense on July 4, 1776
As a seasonal tax preparer this act is a travesty to me. I have an elderly client who immigrated from England in the 1970s and married another former Brit here and both became US Citizens. When he died 2 years ago, she went to visit family in England and while there fell and broke her hip. Now she is living with her family there and the FATCA for her is a NIGHTMARE!
As a US Citizen, none of the British banks want anything to do with her so everything has to be channeled through her family. She had reasonable retirement income and Social Security but just the effort to comply with these regulations is punishing her. I have had to recommend to her that she give up her citizenship since it is unlikely for her to return to independent living back here in the U.S. of A.
This breaks her heart as she feels like her effort to become an American has now made her a criminal to nameless, faceless bureaucrats who have nothing but forms upon forms ‘upon penalty of law’.
Just for the h*ll of it, once on a trip to the Cayman Islands, I looked into opening an account at one of the banks. They really didn’t want my money, to much hassle for anything less than 7 figures.
Got a letter from IRS last week with a 5 page double sided
questionaire asking me to describe my job for a former
employer
Called a Section 7206 Summons
Checked with my accountant and called up my former boss
Is a fishing exposition to see if 1099 I worked on is
legitamate or owe back payroll taxes
Sent it back in - blank...........