US expats thinking of giving up their citizenship.

Just reading this on BBC website.
http://www.bbc.co.uk/news/magazine-24135021

It says

I don't under stand how an American who has lived & worked abroad for many years can owe tax to the USA ?
As long as they paying taxes in the country they live in I can't see a problem.

It seems alot of US-expats are thinking of giving up their US citizenship.

Anyone care to comment ?

 

Tax is theft. It's your money, not theirs.
Distrust any Government inventing new ways to squeeze you. (Hint, that's just about all governments of the last 30 years).


There you are, I commented.

 

Pay your flipping taxes....war pensions depend on it...Work hard...work harder...do overtime...give up holidays...eat at desk...stay late till boss leaves...Work...damn you...work...

Just off to B and Q to get some wall covering for the kitchen...life is hard...

 

There are, sadly, dolebludgers that steal benefits (unemployment, handicap, etc) in one country, while working in another. Not sure if this scheme is going to catch those people, though.

Tax pays for social welfare to people who deserve it, not to lazy thieves who feel self-entitled. Then I also question why elected officials feel the need to burden the tax payers with such rediculous sums in that they take in "compensation", pensions, travel benefits and wages as they do.

 

For goodness sakes....It takes hard earned cash to pay for the expense accounts...still....for our elected members in Commons..It has to be a price worth paying...Having been entertained to lunch on the terrace I'd say it is well worth it...chin chin..mines a pimms..

 

I have a number of ex-students working abroad, the UK, Germany, Spain, Singapore, China, etc. and they all say the paperwork is getting worst. We seem to have a complicated tax system, lots of special interest groups lobby for tax credits and deals and it makes for complications for some. Overseas use to be simple, not now.. To pay several thousand dollars to find out you owe nothing is ridiculous.

I know I pay federal Income tax, State income tax, Auburn occupation tax (income), 9% Auburn sales tax including groceries, Lee County property tax and live here. figuring out my tax from say Italy would be difficult. Even I, born here, no longer do my own taxes.

I do have friends with dual citizenship, wonder what theirs looks like !!!! Since we deprived the Brits of their tea tax perhaps we should send them some of the money we borrow from China, to keep urgh in sheep.
Gaines

PS, Be careful Jeff, a minion tax has not been thought of and it would surely be if one saw it here!!!! NSA remember

 

Taxman keeps sending me letters...at least 6 a year...different things he speaks of....and apparantly I owe nothing and he wants nothing.... But he still keeps in touch bless him...wonder how much this costs to send to all folk who don't owe him anything...

 

American expats who live abroad shouldn't have to pay taxes to Uncle Sam . You pay taxes in one country not two... this is carzy. We have the 6 months + 1 day law. If you are her emor ethan six months , you are considered a permannent resident and pay taxes, if not you pay taxes in the other country. If there are more than two , you pay where you are offcially registered .

 

I can relate to that.

My buddy's wife went on SS disability and was turned down. They didn't go the lawsuit route(I doubt that the could afford it), but they had to refile two or three more times before they were finally accepted.

IIRC, the usual SOP was an automatic turn down on the first and possibly second application before they started to take you seriously.

 

Would having to pay too much tax make you want to give up your US passport ?

 

Have to say the US tax system sounds like a nightmare... Go the way us Aussies did, One fairly simple broad based taxe. Would cut down on a lot of the red tape and wasted man hours.

 

Pheeeww...! One tax?? The GST - Goods and services tax - WAS meant to replace many taxes, income tax an example...do you think it did? It was just another tax....Australia is amongst, if not the most taxed nation on Earth...the alternative is to cut expenditure - The Liberal way...Our politicians lack imagination, one reason they are poiticians i suppose, many ways to skin a cat than simply cutting or taxing. I wouldnt go the way of Australia when it camw to revenue gathering, all we know how to do is sell our souls and tax.

 

Got me there mate, Though compared to the US our tax system is pretty straight forward. Might have a number of different taxes but at least they tend to be universal across all of Australia unlike the US where I have heard tax rates differ from one town to the next..

 

Yeah but they're backwards mate...

 

Federal tax rates are the same throughout the country, no matter where you live. Taxes within each state vary somewhat, but are based on its history and economic situation. I live in Texas which has no State income tax, while most do. Where you see the most variance is in the "Sales Tax".

Many Federal and State "Taxes" are created either to discourage the citizen from doing something, or to pay for the use of some specific thing. On the other hand "Tax Credits" are enacted to encourage a citizen to do things like buy a new car or home.

The Sales Tax is at a set figure everywhere, but local communities can add a slight percentage to help fund local projects. The Federal rate is 6%, but as I live in Waller County another .25% is added to anything I purchase in the county for a total of .625%. If I purchase something in say the town of Hempstead (Waller County Seat) a little more is added, as I am paying the Federal Government, the County of Waller and the City of Hempstead.

 

??? There is no federal sales tax.
Most states do have it as you mention (Oregon doesn't I'm not sure how many others don't). Here in Michigan the sales tax is fixed state wide and we have an income tax with a few cities allowed to also charge an income tax. I know Washington doesn't have an income tax but has a fairly high sales tax that both cities and counties can bump up. Property taxes will also varry by state and usually by locality within the state.

 

"Would having to pay too much tax make you want to give up your US passport ? " Not likely as I cannot imagine a situation where the two would conflict for longer than a few months.

I quite seriously looked at houses, cottages really, in Devon , just south of Mortonhampstead and in Cortona, Italy, to retire too. If the event had occurred and if I lived in one of them and the US still wanted to tax me as well as the new country then yes I would certainly consider giving up my passport but would always consider myself as American because, well I just am. But at 73 I have not retired and have no plans too. Could I be happy living in Devon or similar, I believe so, and would love to give it a go but that does not reflect an anti-American feeling. All countries have problems. I find much of the UK serene and peaceful but know many there that have much stress in their lives. I do not have a blind view of the UK, but I do feel extremely at home there. But it too is changing.

Gaines