Double Taxation
New Overseas?
Why Is It Wrong?
Trade and Treaties
Export Tax
Wrong Answer
A Level Field
The Contract
History of Failure
26 Talking Points
No Jurisdiction
No Representation
The Good
The Bad
The Undecided
What To Do
Form Letter
Wrong Answer

Here is why Citizenship  Based Taxation is wrong and why the foreign earned income exclusion / tax credit do not work:

In an attempt to mitigate some of the most egregious effects of double taxation, the US has introduced some credits for taxes paid abroad. But, unfortunately, the US carefully avoids giving tax credits or deductions for the full economic impact of taxes paid abroad. The Alternative Minimum Tax can also create a tax liablity for income that was earned outside of US jurisdiction and was already taxed by local government!

Double taxation can take place in every event where a foreign country taxes income in a manner unlike that used in the United States.

One example makes this clear. Most European countries collect far more revenue from individuals by indirect value added taxes than through direct taxation of income. The US Government disallows all credit for such indirect taxation because there is no equivalent federal value-added tax in the United States. The economic reality that, the income has been heavily taxed once, and is liable to be taxed a second time by the United States.

                               What to do


[Double Taxation] [New Overseas?] [Why Is It Wrong?] [Trade and Treaties] [Export Tax] [Studies] [Wrong Answer] [A Level Field] [The Contract] [History of Failure] [26 Talking Points] [No Jurisdiction] [No Representation] [Legislation] [The Good] [The Bad] [The Undecided] [What To Do] [Form Letter]