The words “exit tax” should not be included in any discussion of RBT that includes existing #Americansabroad and what non-US assets they have. People should not have to buy their freedom.
— John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) May 23, 2021
The United States imposes a separate and more punitive tax regime on US citizens who live outside the United States than on those who live inside the United States. For those who live permanently outside the United States, the effects are such that they are forced to renounce their US citizenship in order to survive.
To be clear Americans abroad are subject to US taxation. They do pay US taxes.
It is reasonable for Americans abroad to expect to NOT be discriminated against when it comes to entitlement to government services. Interestingly (and predictably) the US government has refused to provide Covid-19 vaccines to US citizens living outside the United States. As described at American Expat Finance, this practice has been criticized by two former US ambassadors in a Wall Street Journal Opinion piece. The Washington Post ran a similar article exposing this possible inequity in access to government services. The reader comments are not sympathetic to Americans abroad.
This issue has been the subject of much internet discussion generally and on various social media sites specifically. Clearly, those who have not lived the experience of life as a US citizen living outside the USA, cannot understand the issues.
Tax Connections has done a fantastic job of providing an educational platform for those trying to understand the facts. I would also like to recommend the following two additional resources:
1. A book documenting how Americans abroad experience FATCA and US citizenship-based taxation. (This was prepared as a submission to the Senate Finance Committee in 2015)
2. Some video accounts of the experiences of certain Americans abroad (prepared around 2015).
It’s important to understand that people are NOT renouncing US citizenship because they want to!
They are renouncing US citizenship because they feel they are forced to! Have a question?
Have a question? Contact Lawyer John Richardson, Citizenship Solutions
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