Example #128374892374 on why our tax code needs to be reworked

[Genx87]

http://money.cnn.com/2014/11/21/news/london-mayor-us-tax/index.html?hpt=hp_t4

The guy hasn't lived in this country since he was 5 years old. US govt wants capital gains tax on a house he sold in the UK. I find him rather humorous about the situation. Wants Obama to pay the congestion tax our diplomats owe.

 

[Brainonska511]

He's free to renounce his US citizenship.

 

[smackababy]

He's free to renounce his US citizenship.

I am pretty sure if he willingly became a UK citizen, he did. The US does not recognize willing dual citizenship. It has to be "accidental" like through a marriage. If you actively apply, you forfeit your US citizenship. At least, that is what I understand.

 

[Jaskalas]

He's free to renounce his US citizenship.

I take it from your response that you support our government's actions in this case?

Why should there be taxes on citizens living / working overseas? Moving to the UK does not mean he has surrendered his birth right. Though you seem eager to push him towards that.

I find this rather objectionable.

 

[Genx87]

He's free to renounce his US citizenship.

So then you are fine with a govt that taxes people who havent lived here in decades on property they sold in another country? You understand there are two countries in the world that do this right?

 

[cubby1223]

If you let this guy off the hook on taxes, that means you are enabling "the rich" to dodge paying their fair share. Sucks he has to pay, but them's the rules necessary to smack down "the evil rich".

 

[1prophet]

He should tell the IRS he is a corporation that just had an inversion, all would be forgiven and he might get money back too.

 

[Exterous]

So then you are fine with a govt that taxes people who havent lived here in decades on property they sold in another country? You understand there are two countries in the world that do this right?

Well the other one clearly must be an industrial and financial powerhouse as only successful countries actively discourage their citizens from living and working abroad....

If you let this guy off the hook on taxes, that means you are enabling "the rich" to dodge paying their fair share. Sucks he has to pay, but them's the rules necessary to smack down "the evil rich".

Yeah! Who gives a shit that the middle class working abroad is penalized in our efforts to go after the rich! Its not like the rich could easily find other avenues to escape taxation while the middle class is stuck dealing with the consequences or anything

 

[Anarchist420]

they need to business taxes then (8% rate and only profits earned in U.S.); the 2.9% (combined) medicare tax should be paid only by those who want to use it.

if that still doesn't cover cover the bill then a 10% marginal tax rate on each personal income ranging from $200k-2mn

IRS can be minimal that way.

Please remember that the estate/gift taxes aren't even 2% of the budget so they should be abolished; all tariffs (skim through the Harmonized Tariff Schedule and you'll see what a joke it is) should be abolished b/c they cost more to collect than what they bring in, and gas companies have expenses to collect the 18 cent per gallon gas tax which is less than 3% of the budget. The National Parks can be gradually sold to all private hands and all debt public and private can be cancelled; the equivalent of up to $250k could go to those who had USD savings.

the u.s.d. and all debt should be cancelled if the u.s. government is going to abuse its citizens.

 

[halik]

I am pretty sure if he willingly became a UK citizen, he did. The US does not recognize willing dual citizenship. It has to be "accidental" like through a marriage. If you actively apply, you forfeit your US citizenship. At least, that is what I understand.

That is patently false, US absolutely supports dual citizenship. My mom has dual.

 

[DCal430]

I am pretty sure if he willingly became a UK citizen, he did. The US does not recognize willing dual citizenship. It has to be "accidental" like through a marriage. If you actively apply, you forfeit your US citizenship. At least, that is what I understand.

That is a myth and isnt true at all.

 

[Riparian]

That is a myth and isnt true at all.

http://answers.usa.gov/system/templ...v/#!portal/1012/article/3399/Dual-Nationality

Loss of Citizenship
You will not lose your U.S. citizenship if you gain foreign citizenship automatically, such as through marriage. However, you may lose U.S. citizenship if you voluntarily apply for foreign citizenship.

 

[DCal430]

http://answers.usa.gov/system/templ...v/#!portal/1012/article/3399/Dual-Nationality

Read how it says may, not will. The supreme court has taken this issue, and has ruled that you must make it clear and explicit that you intend to give up your citizenship. Applying for citizenship in a foreign nation is not enough to lose your citizenship.

 

[DCal430]

I know multiple people who have dual citizenship and not by accident either, but by intent.

 

[DCal430]

If you are a child and your parents apply for you to have citizenship in a foreign county, you don't give up your us citizenship. This courts have already ruled on this issue.

 

[piasabird]

He probably has to pay the UK taxes also.

 

[DCal430]

He probably has to pay the UK taxes also.

The US tax is set up so you get credit for foreign taxes paid, dollar for dollar.

 

[piasabird]

I was born in Morocco near Casablanca at an air force depot (At the time) (1957). They issue you a form that says you are born abroad of US parents, issued by the state department.

I am a white African American.

 

[1prophet]

That is patently false, US absolutely supports dual citizenship. My mom has dual.

You definitely have to give up any dual citizenship if you apply for security clearance.

 

[Riparian]

Read how it says may, not will. The supreme court has taken this issue, and has ruled that you must make it clear and explicit that you intend to give up your citizenship. Applying for citizenship in a foreign nation is not enough to lose your citizenship.

What is required isn't "clear and explicit" but a preponderance of the evidence that the person in question had the intent to renounce citizenship. Anyways, smackbaby's statement didn't have enough details to say whether the legal standard had been satisfied but it's not a myth that you can lose your US citizenship by applying for a citizenship in a foreign nation because it is the first part of the two part legal standard for determining whether one will lose their US citizenship.

 

[JEDIYoda]

You definitely have to give up any dual citizenship if you apply for security clearance.

again not entirely true.... I have the highest security clearance you can get and It has not affected the status of my citizenship...

There are many situations that go into granting a security clearance to somebody who has dual citizenship...

http://news.clearancejobs.com/2010/09/29/dual-citizenship-and-security-clearances/

 

[Fern]

He should tell the IRS he is a corporation that just had an inversion, all would be forgiven and he might get money back too.

The problems of this individual and such corporation all stem from the same principal: US citizens and corporations owe tax on income from outside the US.

The remedy for US citizens in his position is to renounce US citizenship. For US corporations it is an inversion (which is basically the same thing: Renouncing US citizenship).

The solution is to do what most countries do: Just charge income tax on income earned within its (US) borders.

Fern

 

[Fern]

http://answers.usa.gov/system/templ...v/#!portal/1012/article/3399/Dual-Nationality

Loss of Citizenship
You will not lose your U.S. citizenship if you gain foreign citizenship automatically, such as through marriage. However, you may lose U.S. citizenship if you voluntarily apply for foreign citizenship.

The 'key' is the underlined word in the bit your quoted: "may". I.e., it's not automatic. Some countries do require you to renounce your original citizenship and pledge allegiance to their country. That would likely mean you would lose US citizenship.

Fern