Please do explain then how literally every single other country in the world with a strong safety net and welfare system has managed to fund it without having to tax expats.
I known you don’t care about facts here, but for anyone else reading this, the top 10% of American tax payers contribute 74% of all income tax. The US has one of the most progressive tax systems in the world. Stronger social nets in other countries depend on significantly higher taxes on the middle class. That of course does not mean that the extremely wealthy aren’t dodging a lot of taxes, but a decently experienced tech worker or pretty much any doctor is in a very very different tax situation than Jeff Bezos etc.
By the way, again not that you care, but your average worker that earns $120,000 is not making massive international real-estate deals. In the context of Switzerland, for instance, one in four Swiss people make enough to be over the US foreign tax threshold.
I’ll just note for any readers that you still are either unable to or refuse to articulate what makes America so unique that it’s essentially the only country that taxes foreign income.
The United States is one of the few countries that has a system of taxing its citizens and residents on their worldwide income, including income earned abroad. This practice is known as “citizenship-based taxation.” There are a few reasons why the U.S. follows this approach:
Historical Reasons: The United States has had a system of citizenship-based taxation in place for a long time. It dates back to the Civil War era when it was implemented to fund the war effort.
Desire to Prevent Tax Evasion: Citizenship-based taxation is intended to prevent U.S. citizens and residents from avoiding taxes by moving their assets or income abroad. Without it, individuals might seek tax havens to reduce their tax liability.
Complex Tax Code: The U.S. tax code is complex, and changing to a different system, such as residence-based taxation (taxing only income earned within the country), would require a significant overhaul of tax laws.
Revenue Generation: Taxing foreign income allows the U.S. government to generate revenue from its citizens and residents, regardless of where they earn their income.
It’s worth noting that while the U.S. taxes its citizens and residents on foreign income, there are mechanisms in place, such as the Foreign Earned Income Exclusion and foreign tax credits, to mitigate double taxation and reduce the tax burden on income earned in other countries. However, compliance with U.S. tax laws related to foreign income can be complex and may require professional assistance for those living abroad.
Clearly you don’t have any interest in talking, and that’s fine, but I do feel obligated to point out that you curiously did not answer this question:
Please do explain then how literally every single other country in the world with a strong safety net and welfare system has managed to fund it without having to tax expats.
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We’re all waiting…
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I known you don’t care about facts here, but for anyone else reading this, the top 10% of American tax payers contribute 74% of all income tax. The US has one of the most progressive tax systems in the world. Stronger social nets in other countries depend on significantly higher taxes on the middle class. That of course does not mean that the extremely wealthy aren’t dodging a lot of taxes, but a decently experienced tech worker or pretty much any doctor is in a very very different tax situation than Jeff Bezos etc.
By the way, again not that you care, but your average worker that earns $120,000 is not making massive international real-estate deals. In the context of Switzerland, for instance, one in four Swiss people make enough to be over the US foreign tax threshold.
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I’ll just note for any readers that you still are either unable to or refuse to articulate what makes America so unique that it’s essentially the only country that taxes foreign income.
The United States is one of the few countries that has a system of taxing its citizens and residents on their worldwide income, including income earned abroad. This practice is known as “citizenship-based taxation.” There are a few reasons why the U.S. follows this approach:
Historical Reasons: The United States has had a system of citizenship-based taxation in place for a long time. It dates back to the Civil War era when it was implemented to fund the war effort.
Desire to Prevent Tax Evasion: Citizenship-based taxation is intended to prevent U.S. citizens and residents from avoiding taxes by moving their assets or income abroad. Without it, individuals might seek tax havens to reduce their tax liability.
Complex Tax Code: The U.S. tax code is complex, and changing to a different system, such as residence-based taxation (taxing only income earned within the country), would require a significant overhaul of tax laws.
Revenue Generation: Taxing foreign income allows the U.S. government to generate revenue from its citizens and residents, regardless of where they earn their income.
It’s worth noting that while the U.S. taxes its citizens and residents on foreign income, there are mechanisms in place, such as the Foreign Earned Income Exclusion and foreign tax credits, to mitigate double taxation and reduce the tax burden on income earned in other countries. However, compliance with U.S. tax laws related to foreign income can be complex and may require professional assistance for those living abroad.
Hope that helps!
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Clearly you don’t have any interest in talking, and that’s fine, but I do feel obligated to point out that you curiously did not answer this question: