American Extraterritorial Taxation Affects Different Groups in Different Ways

January 20, 2021 – Participants Include:

John Richardson – @Expatriationlaw

Dr. Karen Alpert – @FixTheTaxTreaty

Dr. Laura Snyder – @TAPInternation

Suzanne Herman – @SuzanneHerman1

Keith Redmond – @Keith__Redmond

The core mission of SEAT is to “Stop Extraterritorial American Taxation“.

Extraterritorial American taxation is system that imposes worldwide taxation, on the non-US income of people who live in other countries. That said, there are different groups impacted.

These groups include:

American expatriates – short term Americans abroad who are returning to the USA and engage in financial planning in the US system.

American emigrants – people who moved permanently from the United States and engage in financial planning in tax system of the country of residence (example Canada).

Accidental Americans – people who moved from the United States as small children and not think of themselves as US citizens. Their financial planning revolves ONLY around their country of residence.

American Retirees abroad – people who have moved abroad to retire and live off U.S. source income (example Social Security). They are likely to file ONLY U.S. tax returns.

Additional victims of Extraterritorial Taxation include:

The sovereign countries where U.S. citizens reside; and

Homeland Americans who are effectively prevented from leaving the United States and living a normal life outside the United States.

Why it’s important to distinguish the various groups impacted

US citizenship-based taxation AKA (the US imposition of US worldwide taxation on the tax residents of other countries) is a problem bigger than any one individual or one specific group. Different provisions of the Internal Revenue Code affect different groups differently.

Those varying and disparate effects have made it hard to unify the various groups of Americans abroad in the fight to end US citizenship-based taxation.

This podcast discusses the reason for this and provides examples.

2 thoughts on “American Extraterritorial Taxation Affects Different Groups in Different Ways

  1. PLEASE MAKE THIS AUDIO MORE AVAILABLE AND EASY TO LISTEN TO. This podcast can only be heard on a computer. In order to listen to it on a phone you have to download an app.

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